London, June 19 (The Energy Circle) - Shell has announced a strategic expansion of its liquefied natural gas (LNG) portfolio by acquiring Pavilion Energy, a move set to enhance its market leadership and global reach. Pavilion Energy, a subsidiary of Temasek, the investment arm of the Singapore government, boasts a significant LNG trading business with a contracted supply volume of approximately 6.5 million tonnes per annum.

This acquisition includes Pavilion’s long-term regasification capacity of 2 million tonnes per annum at the Isle of Grain terminal in the UK, along with access in Singapore and Spain. Additionally, Shell will take over Pavilion's LNG bunkering operations and time-charter of five advanced LNG vessels. However, the deal excludes Pavilion’s pipeline gas business and its stake in Tanzanian gas fields.

Pavilion currently meets one-third of Singapore’s power and industrial gas demands and supplies LNG to ships in Southeast Asia, reinforcing Shell's strategic position in both the Asian and European markets. This integration into Shell’s portfolio is ready to deliver significant value and contribute to global energy security, as highlighted by Zoe Yujnovich, Shell’s integrated gas and upstream director. This acquisition aligns with Shell’s strategy to enhance its flexible, diversified LNG supply chain.