Shell Eastern Trading Pte. Ltd., a subsidiary of Shell plc, has entered into an agreement with Carne Investments Pte. Ltd., an indirect subsidiary of Singapore's Temasek Holdings Pte, to acquire Pavilion Energy Pte. Ltd. for $2 billion. This is reported in a press release Shell.
The deal is aimed at increasing LNG production by 20-30% by 2030 and strengthening Shell's position in this sector amid rising demand caused by a decrease in Russian pipeline gas supplies and the abandonment of coal use as part of the transition to clean energy.
Subject to regulatory approval, the transaction should be completed by the first quarter of 2025.
Pavilion Energy has signed contracts for the supply of 6.5 million tons LNG per year to Chevron, BP and QatarEnergy companies, and also signed agreements on the sale of LNG to the largest American liquefied natural gas plants.
In 2023, Temasek engaged Barclays Plc to prepare a potential sale of Pavilion Energy assets, with the exception of the gas pipeline business, which, from the point of view of the Singapore government, is considered a strategic asset and will be transferred to Gas Supply Pte Ltd, a subsidiary of Temasek, before the transaction is completed.
In March 2024, Shell and Saudi Aramco were included in the list of companies bidding to acquire most of Temasek's assets.
Pavilion Energy is an integrated energy business that includes global LNG trading, transportation and optimization, as well as providing financial solutions in the field of energy. The company supplies energy markets in Asia and Europe. Pavilion is a subsidiary of Temasek, headquartered in Singapore.
Temasek is the largest investment company in Singapore. Temasek is the ninth largest public investment company in the world with total assets worth $492 billion.
Shell is a British oil and gas company. Shell owns the largest portfolio of assets in the LNG and marketing sector among the world's largest energy companies, providing almost 20% of global sales. The headquarters is located in London (England).
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