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Shell announced the completion of the acquisition in a statement on Monday, “strengthening its leadership position in LNG.”
The firm did not provide the price tag of the transaction.
Shell said 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 firm said.
Shell added that the integration of Pavilion Energy’s assets into Shell’s global LNG portfolio will start immediately.
In June last year, Singapore’s investment firm Temasek agreed to sell 100 percent of its shares in Pavilion Energy to Shell Eastern Trading, a unit of Shell.
State-owned Temasek said at the time that the deal with Shell Eastern Trading is expected to be completed by the first quarter of 2025, subject to regulatory approvals.
In January 2025, Shell’s finance chief Sinead Gorman confirmed that the company expects to receive regulatory approvals for its acquisition of Pavilion in the first quarter.
6.5 mtpa of LNG supply contracts
Established in 2013 by Temasek, Pavilion is a Singapore-based LNG player that has operations in Singapore and Europe, and it markets and trades LNG in Europe and Asia to a wide range of customers and counterparties.
It has built a diverse portfolio of about 6.5 mtpa of LNG supply contracts from suppliers like Chevron, BP, and QatarEnergy.
The contracts also include Iberdrola’s LNG asset portfolio from Pavilion’s 2019 acquisition.
In addition, Pavilion has offtake contracts from US liquefaction facilities at Corpus Christi, Freeport LNG, and Cameron LNG.
Its portfolio 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 ME-GI LNG vessels and two TFDE vessels.
Pavilion also has an LNG bunkering business with its first vessel deployed in early 2024.