Temasek sells LNG trader Pavilion Energy to Shell

SINGAPORE, June 18, 2024 – Singapore-based global investment company Temasek has agreed to sell 100% of its shares in LNG trading firm Pavilion Energy to Shell, the companies announced on Tuesday.

Pavilion Energy trades LNG in Europe and Asia and holds approximately 6.5 million tpy of long-term sale and supply contracts from suppliers such as Chevron, BP and QatarEnergy. The firm also has offtake agreements from liquefaction facilities at Corpus Christi Liquefaction, Freeport LNG and Cameron LNG in the US.

The companies did not disclose financial details for the transaction.

“The acquisition of Pavilion Energy will strengthen Shell’s leadership position in LNG, bringing material volumes and additional flexibility into our global portfolio. We will acquire Pavilion’s portfolio of LNG offtake and supply contracts, which includes additional access to strategic gas markets in Asia and Europe,” said Zoë Yujnovich, Shell’s integrated gas and upstream director.

As previously announced to investors, Shell is planning to grow its LNG business by up to 30% by 2030 and its purchased LNG volumes by up to 25%, relative to 2022 levels. Integration of the company’s portfolios will commence after the completion of the deal, which is expected by Q1 2025, subject to regulatory approvals and fulfilment of other conditions precedent.

Temasek will retain Pavilion Energy’s wholly owned subsidiary Gas Supply, which imports piped natural gas from South Sumatra in Indonesia. Pavilion Energy’s pipeline gas contracts with customers in the power sector and its 20% interest in Blocks 1 and 4 in Tanzania are also not included in the transaction