Shell Eastern Trading Pte. Ltd., a subsidiary of Shell plc, has reached an agreement with Carne Investments Pte. Ltd., an indirect wholly-owned subsidiary of Temasek, to acquire 100 percent of the shares in Pavilion Energy Pte. Ltd. Pavilion Energy encompasses a global liquefied natural gas trading business with a contracted supply volume of about 6.5 million tonnes per annum.

Headquartered in Singapore, Pavilion Energy’s operations span LNG trading, shipping, and natural gas supply and marketing activities in Asia and Europe.

“The acquisition of Pavilion Energy will strengthen Shell’s leadership position in LNG, bringing material volumes and additional flexibility into our global portfolio,” said Zoë Yujnovich, Shell’s integrated gas and upstream director. “We will acquire Pavilion’s portfolio of LNG offtake and supply contracts, which includes additional access to strategic gas markets in Asia and Europe. By integrating these into Shell’s global LNG portfolio, Shell is strongly positioned to deliver value from this transaction while helping to meet the energy security needs of our customers.”

The acquisition will be absorbed within Shell’s cash capital expenditure guidance, which remains unchanged. The deal surpasses the internal rate of return hurdle rate for Shell’s Integrated Gas business, supporting its 15-25 percent growth ambition for purchased volumes relative to 2022, as outlined during the 2023 Capital Markets Day.

Integration of the portfolios will commence after the completion of the deal, which is expected by Q1 2025, subject to regulatory approvals and the fulfilment of other conditions precedent.

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