03-04-2025

Shell completes acquisition of Pavilion Energy, strengthening leadership position in LNG

Shell Eastern Trading Pte. Ltd., a subsidiary of Shell plc, has completed the previously announced acquisition of 100% of the shares in Pavilion Energy Pte. Ltd.

Pavilion Energy, headquartered in Singapore, operates a global LNG trading business with 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, strengthening Shell’s position in the 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.

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 M-type, 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.
• Pavilion Energy’s pipeline gas business in Singapore was not included as part of the transaction and has been transferred to Gas Supply Pte Ltd (GSPL), a wholly-owned subsidiary of Temasek.
• Pavilion Energy’s 20% interest in blocks 1 and 4 in Tanzania are not included in the transaction.

Shell, via its BG acquisition, holds the first LNG importing license to Singapore, supplying nearly a quarter of the country’s natural gas needs. For more than 10 years, Shell has delivered LNG to Singapore and other markets in Asia reliably and competitively, trading in LNG, Crude, Oil products and other energy commodities to serve customers across Asia, actively contributing to the region’s energy supply security. Shell is a pioneer in developing LNG as a marine fuel for bunkering in Singapore.