Shell and Temasek Nearing LNG Deal Worth Hundreds of Millions of Dollars

Royal Dutch Shell and Singapore’s Temasek Holdings are reportedly close to finalizing a long-term liquefied natural gas (LNG) supply agreement worth hundreds of millions of dollars, according to a Reuters report. Sources familiar with the negotiations have revealed that the deal involves Shell supplying LNG to Temasek’s power plants in Singapore for a period of up to 15 years. The LNG will be sourced from Shell’s global portfolio and could amount to an estimated 1 million tonnes per year. The agreement, if finalized, would bolster Temasek’s efforts to secure a reliable and cost-effective energy supply for Singapore, which is heavily dependent on natural gas for electricity generation. It would also provide Shell with a long-term outlet for its LNG production, which has been ramping up in recent years. The deal is expected to be finalized in the coming weeks, pending regulatory approvals. The precise terms, including the volume and pricing of the gas, remain undisclosed. Analysts believe that the agreement could have broader implications for the global LNG market. It signals an increasing demand for LNG in Asia, where many countries are seeking to reduce their reliance on coal and other fossil fuels. Moreover, the deal could strengthen Shell’s position as a leading LNG supplier, particularly as other major LNG producers, such as Qatar, face production limits. The LNG deal between Shell and Temasek underscores the growing importance of natural gas as a transition fuel in the global energy transition. As countries move towards cleaner energy sources, LNG is expected to play a significant role in meeting energy demand while reducing carbon emissions.Shell to Acquire Temasek’s LNG Assets

Shell to Acquire Temasek’s LNG Assets

Shell is nearing the completion of a multi-million dollar acquisition of liquefied natural gas (LNG) assets from Temasek, a Singapore state investment company, according to Reuters. The acquisition encompasses assets owned by Pavilion Energy, a subsidiary of Temasek. The deal is expected to make Shell the largest LNG supplier in Singapore, Reuters reports. Sources familiar with the negotiations have revealed that the value of the deal is lower than Temasek’s initial asking price. Both Temasek and Shell have declined to comment on the transaction, and Pavilion Energy has yet to respond to a request for comment. The acquisition strengthens Shell’s position in the LNG market, which is experiencing increased demand as countries seek to reduce their reliance on coal and other fossil fuels. The assets acquired from Temasek will complement Shell’s existing LNG infrastructure and supply capabilities in the region. For more information, refer to the full story at: https://tinyurl.com/y598c5j8.Royal Dutch Shell and Singapore’s Temasek are close to signing a long-term liquefied natural gas (LNG) deal worth hundreds of millions of dollars, Reuters reports. The deal would see Temasek buy LNG from Shell’s global portfolio, with deliveries starting as early as 2026. The LNG would be used to meet Singapore’s growing demand for gas, which is currently met through imports from Malaysia and Indonesia. The deal is said to be worth around $500 million per year, and would be one of the largest LNG deals signed in recent years. It would also be a significant boost for Shell’s LNG business, which has been struggling in recent years due to oversupply and low prices. The deal is expected to be announced in the coming weeks.