.jpg)
By Florence Tan and Yantultra Ngoy
SINGAPORE (Reuters) – Singaporean global investment firm Temasek said on Tuesday it had agreed to sell 100% of its shares in liquefied natural gas trading company Pavilion Energy to Shell (LON:).
This announcement confirmed a Reuters report last Thursday stating that Temasek is finalizing the sale of Pavilion Energy to Shell in the coming days in a deal worth hundreds of millions of US dollars.
Temasek did not disclose the financial details of the sale in the statement.
“We believe Shell is well positioned to grow its Pavilion Energy business and strengthen its global LNG hub in Singapore,” Juliet Teo, head of the portfolio development group and head of the Singapore market, said in the statement.
The deal will provide Shell, the world’s largest LNG trader, with access to gas markets in Europe and Singapore as it aggressively expands its LNG footprint after making billions in profits last year.
The deal comes just over a decade after Temasek established Pavilion Energy to meet growing energy demand in Asia and support the energy transition.
Since 2013, Pavilion Energy has expanded from Singapore into Europe and has built a portfolio that includes around 6.5 MTPA, or 1 million tonnes per annum, of LNG supply contracts from suppliers such as Chevron (NYSE:), BP (NYSE:) and QatarEnergy.
It also has offtake contracts from leading US liquefaction facilities Corpus Christi Liquefaction, Freeport LNG and Cameron LNG, according to the statement.
Temasek will retain its wholly-owned unit Gas Supply Limited (GSPL), which imports natural gas via pipeline from South Sumatra in Indonesia, the statement showed.
Pavilion Energy’s pipeline gas contracts with customers in the power sector are also not part of the deal and will be transferred to GSPL, before completion, according to the statement.
Furthermore, Pavilion Energy’s 20% stake in Zones 1 and 4 in Tanzania will not be included in the deal.
The deal is expected to be completed by the first quarter of next year, subject to obtaining regulatory approvals, according to the statement.
