Singapore, Tuesday 18 June 2024 – Carne Investments Pte. Ltd., an indirect wholly-owned subsidiary of Temasek, has reached an agreement to divest 100% of its shares in Pavilion Energy Pte. Ltd. to Shell Eastern Trading Pte. Ltd., a subsidiary of Shell plc.

Pavilion Energy is a Singapore based Liquefied Natural Gas (LNG) player that has operations in Singapore and Europe. It markets and trades LNG in Europe and Asia to a wide range of customers and counterparties. It has built a diverse portfolio of approximately 6.5 mtpa of LNG supply contracts from high quality suppliers like Chevron, bp and QatarEnergy. The contracts also include Iberdrola’s LNG asset portfolio from Pavilion Energy’s 2019 acquisition. In addition, the company has offtake contracts from leading US liquefaction facilities at Corpus Christi Liquefaction, Freeport LNG and Cameron LNG.

“In the last 10 years, Pavilion Energy has grown from its Singapore beginnings into an international energy business marketing and trading LNG in key markets across Europe and Asia to help meet rising energy demand,” said Juliet Teo, Head, Portfolio Development Group and Head, Singapore Market of Temasek. “We believe Shell is well positioned to grow Pavilion Energy’s business and strengthen its global LNG hub in Singapore.”

“In a short decade, we have built a global platform that is recognised by the LNG industry,” commented Tan Sri Mohd Hassan Marican, Chairman of Pavilion Energy. “We appreciate the support of our shareholder, Temasek, and are proud of the contributions of our employees, who have helped Pavilion Energy grow its platform.”

The transaction is expected to complete by Q1 2025, subject to regulatory approvals.

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Notes to editors

• Pavilion Energy was established by Temasek in 2013 to be an integrated LNG and natural gas company to address growing demand for energy in Asia and support the energy transition.
• The portfolio comprises Pavilion Energy’s approximately 6.5 mtpa of long-term sale and supply LNG contracts. It also includes long-term regasification capacity of approximately 2 mtpa at the Isle of Grain LNG terminal (UK), regasification access in Singapore and Spain, marine bunkering business as well as the time-charter of three M-type, Electronically Controlled Gas Injection (MEGI) LNG vessels, two Tri-Fuel Diesel Electric (TFDE) vessels, and one LNG bunkering vessel.
• Temasek will retain Gas Supply Pte. Ltd. (GSPL), a wholly-owned subsidiary of Temasek, which imports piped natural gas from South Sumatra in Indonesia.
• Pavilion Energy’s pipeline gas contracts with customers in the power sector are not part of the transaction and will be novated to GSPL, prior to completion.
• Pavilion Energy’s 20% interest in Blocks 1 and 4 in Tanzania will not be included in the transaction.
• Temasek and Shell have not disclosed financial details of the sale.

About Temasek

Temasek is a global investment company with a net portfolio value of S$382 billion (US$287b, €264b, £232b, RMB1.98t) as at 31 March 2023.

Our Purpose “So Every Generation Prospers” guides us to make a difference for today’s and future generations.

As an active investor, forward looking institution and trusted steward, we are committed to deliver sustainable value over the long term.

Temasek has overall corporate credit ratings of Aaa/AAA by rating agencies Moody’s Investors Service and S&P Global Ratings respectively.

Headquartered in Singapore, we have 13 offices in 9 countries around the world: Beijing, Hanoi, Mumbai, Shanghai, Shenzhen, and Singapore in Asia; and London, Brussels, Paris, New York, San Francisco, Washington DC, and Mexico City outside Asia.

About Pavilion Energy

Pavilion Energy is wholly-owned by Carne Investments Pte. Ltd., an indirect wholly-owned subsidiary of Temasek. Headquartered in Singapore, its global energy business encompasses natural gas supply and marketing activities in Asia and Europe; and global LNG trading, shipping and optimisation. An advocate for LNG and natural gas as the transition fuel of choice, Pavilion Energy is driving energy transition efforts towards a more sustainable future through the development of LNG bunkering for the maritime industry.

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