TEMASEK’s indirect wholly owned subsidiary, Carne Investments, will sell its entire stake in Pavilion Energy to Shell Eastern Trading, a subsidiary of the global oil giant.
Pavilion Energy, a Singapore-based liquefied natural gas player (LNG), was established by Temasek in 2013, and it markets and trades LNG in Europe and Asia. It was set up to address the rise in demand for energy in Asia and support the energy transition.
On Tuesday (Jun 18), Temasek said Pavilion Energy has a diverse portfolio of about 6.5 million tonnes per annum of LNG supply contracts from suppliers such as Chevron and QatarEnergy.
It added that the contracts also include renewable energy company Iberdrola’s LNG asset portfolio which Pavilion Energy acquired in 2019, as well as offtake contracts from US liquefaction facilities.
Temasek said it will retain its wholly owned unit Gas Supply, which imports piped natural gas from South Sumatra in Indonesia.
Pavilion Energy’s pipeline gas contracts with companies in the power sector are not part of the deal and they will be novated to Gas Supply. Some 20 per cent of its interest in Blocks 1 and 4 in Tanzania is also excluded from the deal.
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Juliet Teo, Temasek’s head of portfolio development group and head of Singapore market, said: “In the last 10 years, Pavilion Energy has grown from its Singapore beginnings into an international energy business marketing and trading LNG in key markets across Europe and Asia to help meet rising energy demand.”
She added: “We believe Shell is well positioned to grow Pavilion Energy’s business and strengthen its global LNG hub in Singapore.”
The transaction is expected to be completed by the first quarter of 2025, subject to regulatory approval.
Temasek and Shell have not disclosed financial details of the sale.
