Aswat Asharq Al-Awsat :

Aswat Asharq Al-Awsat : Shell to Acquire Singaporean LNG firm Pavilion Energy from Temasek

Dredger Vox Maxima is anchored in the waters as workers clean up an oil slick at Siloso Beach in Sentosa, Singapore June 18, 2024. REUTERS/Edgar Su
Dredger Vox Maxima is anchored in the waters as workers clean up an oil slick at Siloso Beach in Sentosa, Singapore June 18, 2024. REUTERS/Edgar Su
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Shell to Acquire Singaporean LNG firm Pavilion Energy from Temasek

Dredger Vox Maxima is anchored in the waters as workers clean up an oil slick at Siloso Beach in Sentosa, Singapore June 18, 2024. REUTERS/Edgar Su
Dredger Vox Maxima is anchored in the waters as workers clean up an oil slick at Siloso Beach in Sentosa, Singapore June 18, 2024. REUTERS/Edgar Su

Shell has agreed to buy Singaporean liquefied natural gas (LNG) company Pavilion Energy from global investment company Temasek in a move the oil major said will strengthen its leadership position in LNG, according to statements on Tuesday.
The announcement confirmed a Reuters' report last Thursday saying Singapore's Temasek was finalizing the Pavilion Energy sale to Shell in the coming days in a deal worth hundreds of millions of US dollars.
Shell and Temasek did not disclose financial details of the sale in their statements.
The deal will provide Shell, already the world's top LNG trader, with access to gas markets in Europe and Singapore as it aggressively expands its LNG footprint after raking in billions in profits last year.
It includes Pavilion Energy's 6.5 million metric tons per annum (mtpa) of LNG supply contracts from suppliers such as Chevron, BP and QatarEnergy sourced from US liquefaction facilities such as the Corpus Christi Liquefaction, Freeport LNG and Cameron LNG.
Pavilion's long-term regasification capacity of approximately 2 mtpa at UK's Isle Grain LNG terminal, its regasification access in Singapore and Spain, and its LNG bunkering business in Singapore, the world's largest ship refuelling port, are also included in the deal, Shell said.
Zoë Yujnovich, Shell's integrated gas and upstream director, said that the purchase will bring material volumes and additional flexibility to its global portfolio.
Shell said the acquisition will be absorbed within its cash capital expenditure guidance, which remains unchanged.
"The deal is in excess of the internal rate of return hurdle rate for Shell's integrated gas business, delivering on its 15-25% growth ambition for purchased volumes, relative to 2022," Shell said in its statement.
Shell planned to expand its LNG business by 20% to 30% by 2030, compared with 2022, and this deal is expected to help deliver these targets, it added.
Shell expects global demand for LNG to rise by more than 50% by 2040 as coal-to-gas switching gathers pace in China, South Asian and Southeast Asian countries.
The deal came just over a decade after Temasek established Pavilion Energy to address the growing demand for energy in Asia and support the energy transition.
"We believe Shell is well positioned to grow Pavilion Energy's business and strengthen its global LNG hub in Singapore," Juliet Teo, Temasek's head of portfolio development group and head of Singapore market, said in its statement.
Temasek will retain its wholly owned unit Gas Supply Pte Ltd (GSPL), which imports piped natural gas from South Sumatra in Indonesia, Temasek's statement showed.
Pavilion Energy's pipeline gas contracts with customers in the power sector are also not part of the transaction and will be novated to GSPL, prior to completion, according to both statements.
Moreover, Pavilion Energy's 20% interest in Blocks 1 and 4 in Tanzania will not be included in the deal.
The transaction is expected to complete by first quarter of next year, subject to regulatory approvals, according to both statements.
Pavilion will continue to operate as a separate and independent business until the transaction is completed, according to a Temasek spokesperson.



Aswat Asharq Al-Awsat : Saudi Energy and Economy Ministries Launch Carbon Capture, Utilization Challenge with UpLink

The Saudi flag. Aswat Asharq Al-Awsatt
The Saudi flag. Aswat Asharq Al-Awsatt
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Saudi Energy and Economy Ministries Launch Carbon Capture, Utilization Challenge with UpLink

The Saudi flag. Aswat Asharq Al-Awsatt
The Saudi flag. Aswat Asharq Al-Awsatt

Saudi Arabia's Ministry of Economy and Planning (MEP) and Ministry of Energy (MoEnergy), in collaboration with UpLink, have launched the Carbon Capture and Utilization Challenge which seeks innovative solutions that accelerate the circular carbon economy.

The challenge was launched during the United Nations High-Level Political Forum on Sustainable Development (HLPF) in a main session titled ‘SDG 13 and Interlinkages with Other SDGs – Climate Action’ held on July 10.

The challenge encourages startups to submit distinct solutions that drive carbon reductions through sustainable systems transformation, including carbon capture technologies, novel carbon utilization applications, and industrial integration.

The initiative emphasizes the importance of carbon capture and utilization (CCU), highlighting the crucial role innovation plays in driving a sustainable and economically prosperous future and the important role of carbon removal in reaching net-zero goals by mid-century.

“The climate change issue and sustainability is a global issue,” Saudi Minister of Energy Prince Abdulaziz bin Salman said. “It cannot be attended to in regional scopes or as a smaller territorial thing. It has to be global.”

He stated that the Kingdom seeks to enhance its efforts to achieve its ambitious goal of reaching net zero by 2060 through the Circular Carbon Economy Framework, which not only reduces the impact of carbon emissions, but also values carbon as a resource with real economic value, rather than pollutant.

He also indicated that the Kingdom, in line with this vision, and in order to exploit the economic value of carbon worldwide, has launched, in partnership with leading organizations, a global carbon capture and utilization challenge.

The Minister stressed that Saudi Arabia, by adopting such challenge, is leading influential changes in efforts to confront climate change, as this challenge represents an opportunity for individuals and organizations to transform tomorrow’s challenges into today’s solutions, through joint efforts and pioneering innovations.

Saudi Minister of Economy and Planning Faisal Alibrahim said: “The Kingdom is keen on a just, orderly, and pragmatic energy transition and is working towards the advancement of the circular carbon economy framework.”

“Through this challenge, related to innovation inside the circular carbon economy, we look forward to seeing new solutions that would help push innovation forward,” he said.

He encouraged all innovators and companies to come up with “out-of-the-box solutions.”

Submissions will be evaluated on factors such as scalability, commercial viability, technological readiness, and fundraising success.

Winners will be recognized as top innovators and form part of the UpLink Innovation Ecosystem, a curated program for founders, CEOs, executive directors, and other leaders. They will also share a cash award of up to CHF 300,000 and receive technical, business, and operational support to scale their ideas.