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Shell has significantly expanded its liquefied natural gas (LNG) capabilities through the acquisition of Singapore-based Pavilion Energy's global trading business (the early announcement of this collaboration was made on June 18, 2024). This collaboration incorporates Pavilion Energy's substantial 6.5 million tonnes per annum (mtpa) of contracted LNG supply volumes into Shell's industry-leading portfolio.

The transaction encompasses Pavilion Energy's comprehensive LNG assets, including:  Long-term offtake and supply agreements, valuable regasification capacity rights, and an established LNG bunkering network.

The acquisition strengthens Shell's position in Singapore, where it already supplies nearly 25% of natural gas through its BG subsidiary's LNG import license. The move supports Shell's strategy to expand its global LNG leadership.

This acquisition aligns perfectly with Shell's strategic goal to grow its LNG sales by 4-5% annually through 2030, reinforcing its position as the world's premier LNG supplier. The integration of Pavilion Energy's operations into Shell's global framework begins immediately, with the acquisition costs being accommodated within Shell's existing capital expenditure guidance.

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The combination of Shell's market-leading scale with Pavilion Energy's strong Asian trading presence and bunkering expertise creates a more robust, diversified LNG business. This enhanced platform will better serve global customers while driving innovation in the energy transition space, particularly in maritime decarbonization through LNG bunkering solutions.