Energy major Shell is being named as the company set to snap up Singapore’s LNG company Pavilion Energy.
Reuters reported that Shell is finalising the purchase of the company from Singapore’s sovereign wealth fund, Temasek Holdings, adding that the deal is set to be completed in days.
The news agency had previously detailed that Shell and Saudi Aramco — which is moving to break into the LNG sector — were competing for Pavilion.
Temasek was said to be asking for over $2bn for the company.
The purchase would give Shell access to Pavilion’s LNG business in Singapore but also its upstream investments in Tanzania and assets in the UK and Spain where the company holds regasification capacity.
In Singapore, Pavilion Energy is one of four firms appointed by the Energy Market Authority to import LNG.
Reuters said Shell has been supplying one-quarter of Singapore’s natural gas needs and the buyout would make it the biggest LNG supplier to the island republic.
The deal would also expand existing Shell’s LNG bunkering interests in the region. Pavilion has been supplying LNG bunkers in Singapore and China.
Last year, Pavilion teamed up with Finland’s Gasum, and CNOOC Gas and Power Group to build out an LNG bunker supply network across north-west Europe, Singapore and the Chinese coast.
