Shell completes acquisition of Pavilion Energy

Pavilion Energy’s LNG Bunker Vessel Brassavola. The Singapore company was acquired by Shell. (Image: Pavillion Energy)

Shell Eastern Trading Pte. Ltd., a subsidiary of Shell plc, has finalized its acquisition of 100% of the shares in Pavilion Energy Pte. Ltd., a global LNG trading company headquartered in Singapore.

The acquisition, first announced in June 2024, strengthens Shell’s position in the liquefied natural gas (LNG) market. Pavilion Energy’s portfolio includes around 6.5 million tonnes per annum (mtpa) of contracted LNG supply, along with long-term offtake and supply agreements, regasification capacity, and an LNG bunkering business.

The deal, which is in line with Shell’s cash capital expenditure guidance, supports the company’s goal of increasing LNG sales by 4-5% annually through 2030. The integration of Pavilion Energy’s assets into Shell’s global LNG portfolio will begin immediately.

The transaction excludes Pavilion Energy’s pipeline gas business in Singapore, which has been transferred to Gas Supply Pte Ltd., a wholly-owned subsidiary of Temasek. Additionally, Pavilion Energy’s 20% stake in Tanzanian gas blocks 1 and 4 was not part of the deal.

Shell’s BG acquisition has allowed the company to hold Singapore’s first LNG import license, and Shell is a key player in the country’s energy supply, providing nearly a quarter of Singapore’s natural gas needs. The company has been trading LNG, oil, and other energy products in Asia for more than a decade and is also a pioneer in LNG bunkering in Singapore.