Shell and Saudi Aramco are currently in the final stages of negotiations for the potential acquisition of Pavilion Energy, a liquefied natural gas (LNG) trading firm owned by Temasek. After completing the due diligence process, both companies are now locked in price negotiations as they vie to purchase Pavilion Energy’s assets.
The Singapore state investment firm established Pavilion Energy a decade ago to focus on LNG-related investments, with the assets estimated to be worth over $2 billion. While Shell, Aramco, and other involved parties have chosen not to comment on the ongoing negotiations, Aramco views the deal as a strategic opportunity to solidify its presence as a major global LNG player.
Shell, on the other hand, sees gas and LNG as pivotal in the energy transition, replacing more environmentally harmful sources like coal.