Apr 02, 2025 (MarketLine via COMTEX) --
Pavilion EnergyaEUR(TM)s portfolio comprises around 6.5mtpa of long-term sale and supply LNG contracts.
Shell Eastern Trading has finalised the purchase of Pavilion Energy, strengthening its position in the liquified natural gas (LNG) market.
The acquisition includes Pavilion Energy's LNG portfolio, which boasts a contracted supply volume of around 6.5 million tonnes per annum (mtpa).
The integration of Pavilion Energy's assets including LNG offtake and supply contracts, regasification capacity and an LNG bunkering business aligns with Shell's objective to grow its LNG sales by 4aEUR"5% annually until 2030.
The assimilation of Pavilion Energy's assets into Shell's global LNG portfolio will begin immediately.
The acquired assets encompass long-term regasification capacity of around 2mtpa at the UK's Isle Grain LNG terminal, access to regasification in Singapore and Spain, and the time-charter of three M-type, electronically controlled gas injection LNG vessels and two tri-fuel diesel electric vessels.
Additionally, there is also Pavilion Energy's LNG vessel that was deployed in early 2024.
Pavilion Energy's pipeline gas business in Singapore was excluded from the deal and has been transferred to Gas Supply, a fully-owned subsidiary of Temasek.
Similarly, Pavilion Energy's 20% stake in Tanzania's blocks 1 and 4 was not part of the agreement.
Demand for LNG is expected to increase by more than 50% globally by 2040 due to the accelerated industrial coal-to-gas switch in China, and South Asian and South East Asian countries.
According to ShellaEUR(TM)s LNG Outlook 2024, these countries are expected to use more LNG to support their economic growth.
Shell plans to expand its LNG business by 20aEUR"30% by 2030, compared with 2022, and purchased LNG volumes are estimated to increase by 15aEUR"25%, relative to 2022.
In 2021, British oil major bp signed a ten-year LNG supply agreement with Pavilion Energy Trading & Supply, a unit of Singapore-based Pavilion Energy.
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COMTEX_464176920/2227/2025-04-02T18:11:13
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