According to two sources with knowledge of the situation, Singapore’s Temasek Holdings is close to closing the deal with Shell regarding the sale of some assets from liquefied natural gas ( LNG ) trading company, which is scheduled to close in the coming days.
Shell, the best LNG investor in the world, may gain access to the oil markets in Europe and Singapore as it violently expands its LNG footprints after generating billions of revenue next year.
The deal’s price will be in the hundreds of millions of US money, one of the sources said. Temasek initially sought a lower price from the price, but that would not be what.
Shell and Saudi Aramco were in advanced discussions to get the goods from Temasek, which had wanted to get more than US$ 2 billion from the deal, according to a Reuters report from April.
The options kept their identities since they were not permitted to speak with the media.
Temasek, Pavilion Energy and Shell declined to comment.
Following Pavilion Energy’s income in the year to March 2023 on strong LNG prices following the Ukrainian war, Temasek announced the sale of the Singapore-based trader in the days leading up to the deal.
Shell will become the largest dealer to Singapore after Shell has been providing a third of its natural gas needs.
However, the Pavilion Energy property sale will eliminate Gas Supply Pte Ltd, which has a licensing to trade natural gas by pipeline from Indonesia, the sources said, according to energy security concerns.
Temasek established Pavilion Energy ten years ago to concentrate on LNG-related projects.
With the order of Iberdrola’s Gas resources, including regasification power in the UK and Spain, Pavilion Energy made an investment of US$ 1.3 billion in three oil blocks in Tanzania in 2013.
Due to the impact of Russia’s invasion of Ukraine on nations ‘ reliance on Russian gas, Spain has since re-exported about tenth of its LNG volumes to Europe, where Pavilion Energy imports about tenths of the volume. This has made Spain a major oil supplier.
Pavilion Energy is one of four companies that the Energy Market Authority has appointed to buy LNG in Singapore. According to its site, LNG and piped natural gas are used to meet one-third of Singapore’s need for power and business gas.
It likewise supplies LNG to boats in Singapore, the world’s best bunkering interface.
The unregistered organization posted income after taxes of US$ 438 million for the year to March 2023, reversing a month earlier damage of$ 666 million, while revenue rose 38 per cent to US$ 9.09 billion, according to Temasek’s website.
It carried shareholder equity value of US$ 3.63 billion as of March 2023, Temasek’s website showed.