By Romel S. Gurky
Shell Eastern Trading Pte. Ltd., a subsidiary of Shell plc, announced on Tuesday (April 1) the completion of its acquisition of 100% of the shares in Pavilion Energy Pte. Ltd.
Headquartered in Singapore, Pavilion Energy operates a global LNG trading business, with a contracted supply volume of approximately 6.5 million tonnes per annum (mtpa). The acquisition includes Pavilion Energy’s portfolio of LNG offtake and supply contracts, regasification capacity, and LNG bunkering business, further strengthening Shell’s position in the global LNG market.
The acquisition will be absorbed within Shell’s cash capital expenditure guidance. This acquisition helps to deliver on Shell’s ambition to solidify its leading position in liquified natural gas (LNG) by growing sales by 4-5% per year through to 2030.The integration of Pavilion Energy’s assets into Shell’s global LNG portfolio will commence immediately.
Read also: Regional LNG: Temasek signs agreement to divest Pavilion Energy
On June 18, 2024, Shell announced the signing of an agreement to acquire Pavilion Energy from Carne Investments Pte. Ltd., an indirect wholly-owned subsidiary of Temasek
Pavilion Energy’s portfolio comprises about 6.5 mtpa of long-term sale and supply LNG contracts. It also includes long-term regasification capacity of approximately 2 mtpa at the Isle Grain LNG terminal (United Kingdom), regasification access in Singapore and Spain, as well as the time-charter of three Mtype, Electronically Controlled Gas Injection (MEGI) LNG vessels and two Tri-Fuel Diesel Electric (TFDE) vessels. It also has an LNG bunkering business with its first vessel deployed in early 2024.
However, Pavilion Energy’s pipeline gas business in Singapore was not included in the transaction and has been transferred to Gas Supply Pte. Ltd. (GSPL), a wholly owned subsidiary of Temasek. Additionally, Pavilion Energy’s 20% interest in offshore blocks 1 and 4 in Tanzania is not part of the deal.
Shell, which acquired BG Group in 2016, holds Singapore’s first LNG import license and currently supplies nearly a quarter of the country’s natural gas needs. For over a decade, Shell has reliably delivered LNG to Singapore and other Asian markets, trading in LNG, crude oil, refined products, and other energy commodities. The company has also played a key role in enhancing the region’s energy security. Furthermore, Shell is a pioneer in the development of LNG as a marine fuel for bunkering in Singapore.
Editing by Reiner Simanjuntak
