Singapore-based Shell Eastern Trading, a subsidiary of the Dutch energy multinational, has completed the full acquisition of Pavilion Energy, strengthening its presence in the LNG trading business.
Pavilion Energy, also in Singapore, is a natural gas supplier with contracted supply volume of approximately 6.5 million tonnes per annum (mtpa).
The acquisition includes Pavilion Energy’s portfolio of LNG offtake and supply contracts, regasification capacity, and LNG bunkering business, including around 2 mtpa at the Isle Grain LNG terminal in the UK.
Shell aims to grow its LNG sales by 4% to 5% per year through to 2030, after reorienting its business priorities recently.
The deal that completed today was originally struck in June 2024. It sees Shell buy Pavilion Energy from Carne Investments, an indirect wholly owned subsidiary of Singapore holding group Temasek.
Pavilion Energy’s 20% interest in blocks 1 and 4 in Tanzania were not included in the transaction.
Shell, via its acquisition of UK energy company BG, holds the first LNG importing licence into Singapore, supplying nearly a quarter of the country’s natural gas needs.
Global demand for LNG is forecast to rise by around 60% by 2040, largely driven by economic growth in Asia and emissions reductions in heavy industry and transport, as well as the impact of artificial intelligence, according to Shell’s LNG Outlook 2025.
Industry forecasts now expect LNG demand to reach 630 million to 718 million tonnes a year by 2040, which is a higher forecast than last year.
Global LNG trade grew by only 2 million tonnes in 2024, the lowest annual increase in 10 years, to reach 407 million tonnes, due to constrained new supply development.
Yesterday, Shell Singapore completed the sale of its Energy and Chemicals Park in Singapore to CAPGC, which is a joint venture between Chandra Asri Capital and Glencore Asian Holdings.
