Shell has reached a deal to buy Singapore-based LNG trader Pavilion Energy, in a move that will further strengthen the UK major’s lead position in global LNG.

Shell said on June 18 that it had signed an agreement with Carne Investment, a wholly-owned subsidiary of global investment company Temasek, to buy 100% of shares in Pavilion, which has an LNG trading business amounting to 6.5mn tonnes per year (tpy) of contracted supply. Pavilion’s LNG business covers trading, shipping, natural gas and marketing operations in Asia and Europe.

The acquisition “will strengthen Shell’s leadership position in LNG, bringing material volumes and additional flexibility into our global portfolio,” the head of Shell’s integrated gas and upstream business, Zoe Yujnovich, said in a statement. “We will acquire Pavilion’s portfolio of LNG offtake and supply contracts, which includes additional access to strategic gas markets in Asia and Europe. By integrating these into Shell’s global LNG portfolio, Shell is strongly positioned to deliver value from this transaction while helping to meet the energy security needs of our customers.”

Shell is banking big on LNG, targeting a growth in its trading of the fuel by 20-30% by 2030 versus the volume in 2022. Asian coal-to-gas switching will drive demand growth for the fuel by over 50% by 2040, according to the company.

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