Shell to acquire Singaporean LNG firm Pavilion Energy from Temasek

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Shell has announced its acquisition of Singaporean LNG company Pavilion Energy from Temasek, aiming to bolster its leadership in the liquefied natural gas market. While financial specifics were not disclosed, the deal is expected to be valued in the hundreds of millions of U.S. dollars. Shell plans to integrate Pavilion Energy within its existing capital expenditure framework, maintaining its target for a 15-25% growth in purchased volumes compared to 2022. This strategic acquisition will enhance Shell’s access to gas markets in Europe and Singapore, solidifying its position as the world’s top LNG trader.

Pavilion Energy, established by Temasek over a decade ago, has grown significantly to include a robust portfolio of 6.5 million tonnes per year of LNG supply contracts with major suppliers such as Chevron, BP, and QatarEnergy. Additionally, Pavilion holds offtake contracts with prominent U.S. liquefaction facilities like Corpus Christi Liquefaction, Freeport LNG, and Cameron LNG. Despite this sale, Temasek will retain its wholly owned unit Gas Supply Pte Ltd, which manages pipeline gas imports from Indonesia, and Pavilion’s pipeline gas contracts will be transferred to GSPL before the deal’s completion.

The acquisition, set to finalize by the first quarter of next year pending regulatory approvals, will provide Shell with significant volumes and operational flexibility within its global LNG portfolio. Until the transaction is completed, Pavilion Energy will continue to function as an independent entity.

Source: Reuters

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