Shell unit takes over Pavilion Energy

The oil firm aims to complete the acquisition by early 2025.

Carne Investments, an indirect wholly-owned subsidiary of Temasek, has agreed to divest Pavilion Energy to Shell Eastern Trading.

Shell Integrated Gas and Upstream Director Zoë Yujnovich said the acquisition will strengthen the oil company’s position in the liquified natural gas (LNG) industry.

Pavilion Energy has a contracted supply volume of about 6.5 million tonnes per annum from suppliers such as Chevron, BP and QatarEnergy.

It also has offtake contracts from leading US liquefaction facilities at Corpus Christi Liquefaction, Freeport LNG, and Cameron LNG.

Shell said the transaction is in excess of the internal rate of return hurdle rate for its Integrated Gas business, delivering on its 15%-25% growth ambition for purchased volumes, relative to 2022, as outlined during the 2023 Capital Markets Day.

The oil firm aims to complete the deal by early 2025.