Temasek sells Pavilion Energy to Shell

Shell subsidiary Shell Eastern Trading will purchase 100% stake in LNG supplier Pavilion Energy from Carne Investments, a subsidiary of Singapore-based investment firm Temasek.

PHOTO: Pavilion Energy's LNG bunker vessel Brassavola delivers a stem to a Rio Tinto-chartered bulk carrier. Pavilion Energy

Pavilion Energy is a physical LNG bunker supplier in Singapore. It has chartered a 12,000-cbm LNG bunker vessel for bunkering operations in the Port of Singapore.

As part of the deal, Shell will acquire Pavilion Energy’s entire portfolio including 6.5 million mt/year of LNG supply contracts with Chevron, BP and QatarEnergy and Iberdrola’s LNG asset portfolio. It will also acquire existing offtake agreements with US liquefaction facilities at Corpus Christi Liquefaction, Freeport LNG and Cameron LNG.

In February this year, Shell projected global LNG bunker demand to rise to around 5 million mt this year. It also estimated the demand to double to 10 million mt/year by 2028. According to the company, a chunk of this demand growth would come from container ships, followed by Ro-Ro vessels and tankers.

Shell currently has a presence in Singapore's physical LNG bunkering market through FueLNG, which is a joint venture between Seatrium Offshore & Marine and Shell Singapore. Pavilion Energy’s acquisition is expected to enhance its physical bunkering network in Singapore.

The deal is expected to be completed by next year.

By Konica Bhatt

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