(Alliance News) - Shell PLC on Tuesday said it will buy Pavilion Energy Pte Ltd from Temasek Holdings (Private) Ltd subsidiary Carne Investments Pte Ltd for an undisclosed sum.

The London-based oil major said Singapore-headquartered Pavilion includes a global liquefied natural gas trading business with a contracted supply volume of around 6.5 million tonnes per year.

"The acquisition of Pavilion Energy will strengthen Shell’s leadership position in LNG, bringing material volumes and additional flexibility into our global portfolio," said Zoe Yujnovich, Shell's Integrated Gas & Upstream director.

She added: "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."

The acquisition is part of Shell's plan to grow its LNG business by 20% to 30% by 2030 compared with 2022.

The integration of portfolios will start after the completed acquisition, expected in the first quarter of 2025. It is subject to regulatory approvals.

The seller, Temasek, is the state holding and investment company of Singapore.

Shell shares were 0.3% higher at 2,734.50 pence each on Tuesday morning in London.

By Tom Budszus, Alliance News slot editor

Comments and questions to newsroom@alliancenews.com

Copyright 2024 Alliance News Ltd. All Rights Reserved.