Shell Eastern Trading Pte. Ltd., a subsidiary of Shell plc, has agreed to acquire Pavilion Energy Pte. Ltd., Singapore, adding to the operator’s global LNG portfolio. Financial details were not disclosed.
Shell plans to grow its LNG business by 20-30% by 2030, compared with 2022, while purchased LNG volumes are expected to grow by 15-25%, relative to 2022.
The deal, reached with Carne Investments Pte. Ltd., an indirect wholly owned subsidiary of Temasek, is expected to strengthen Shell’s position in LNG, “bringing material volumes and additional flexibility” to the portfolio, said Zoë Yujnovich, Shell’s Integrated Gas and Upstream director, in a release June 18.
“We will acquire Pavilion’s portfolio of LNG offtake and supply contracts, which includes additional access to strategic gas markets in Asia and Europe,” Yujnovich continued.
The portfolio to be acquired is comprised of about 6.5 million tonnes/year (tpy) of LNG in long-term sale and supply LNG contracts from suppliers like Chevron, bp, and QatarEnergy. The company also has offtake contracts from US liquefaction plants at Corpus Christi Liquefaction, Freeport LNG, and Cameron LNG. The portfolio includes long-term regasification capacity of about 2 million tpy at the Isle Grain LNG terminal (UK), regasification access in Singapore and Spain, as well as the time-charter of three M-type, electronically controlled gas injection LNG vessels, two tri-fuel diesel electric vessels, and an LNG bunkering business with its first vessel deployed earlier this year.
Pavilion Energy’s pipeline gas business is not included as part of the transaction and will be transferred to Gas Supply Pte Ltd, a wholly owned subsidiary of Temasek, prior to completion. Also not included in the deal is Pavilion Energy’s 20% shareholding in Block 1 and 4 in Tanzania.
Integration of portfolios will begin after completion of the deal, which is expected by first-quarter 2025, subject to regulatory approvals and other conditions.
