Shell expands LNG portfolio with acquisition of Singaporean firm

Shell Eastern Trading, an affiliate of the UK-headquartered energy giant Shell, has completed the acquisition of Singapore-based energy solutions provider Pavilion Energy, a subsidiary of Temasek.

As disclosed on April 1, 2025, Shell Eastern Trading is now formally the owner of 100% of the shares in Pavilion Energy. The deal was first announced in June 2024, when Shell disclosed having reached an agreement with Carne Investments, an indirect wholly-owned subsidiary of Temasek. The integration of Pavilion Energy’s assets into the UK major’s global LNG portfolio is set to start immediately.

Pavilion Energy operates a global LNG trading business with a contracted supply volume of approximately 6.5 million tonnes per annum (mtpa), paired with a long-term regasification capacity of approximately 2 mtpa at the UK’s Isle Grain LNG terminal, regasification access in Singapore and Spain.

The firm’s portfolio also includes the time-charter of three M-type, electronically controlled gas injection (MEGI) LNG vessels, two tri-fuel diesel electric (TFDE) vessels, and an LNG bunkering business. The latter’s 12,000 cubic meter bunker vessel Brassavola completed its first ship-to-ship bunkering operation in early 2024.

The acquisition includes Pavilion Energy’s portfolio of LNG offtake and supply contracts, regasification capacity, and LNG bunkering business, but its 20% shareholding in Blocks 1 and 4 in Tanzania was not included in the transaction, and neither has Pavilion’s pipeline gas business. According to Shell, the latter has been transferred to Gas Supply Pte Ltd (GSPL).

“The acquisition of Pavilion Energy will strengthen Shell’s leadership position in LNG, bringing material volumes and additional flexibility into our global portfolio. 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,” said Zoë Yujnovich, who was Shell’s Integrated Gas and Upstream Director at the time of the announcement.

Yujnovich’s departure from the company was disclosed earlier this month. She was to step down effective March 31, 2025, followed by her leaving the group. Cederic Cremers was appointed President of Integrated Gas, and Peter Costello President of Upstream.

Shell believes this acquisition will help solidify its position in the LNG sector by growing sales by 4–5% per year through to 2030. The deal is also expected to help the energy major deliver the targets of growing its LNG business by 20–30% by 2030 and increasing LNG volumes purchased by 15–25%, both compared to 2022 levels.

In addition to boosting its LNG portfolio, Shell recently handed out an enterprise framework agreement (EFA) to McDermott for engineering and procurement services and integrated project management team services (IPMT).