Temasek to set up LNG focused S$1 billion investment unit Pavilion Energy

Temasek Holdings Pte Ltd, the sovereign wealth fund of Singapore has set up a new investment unit focused on liquefied natural gas (LNG), in order to tap into the growing demand in Asia, led by the region's three largest LNG consumers - Japan China and India.

Temasek has earmarked an initial invewstment of S$1 billion ($806 million) as authorised capital of the investment unit, Energy Pte.

The company will begin operations in September this year and will be headed by technology entrepreneur and innovator Seah Moon Ming, who joined Temasek last month as senior managing director, special projects, from ST Engineering, where he was deputy CEO.

Hassan Marican, former CEO of Malaysian state-owned oil company Petronas, has been entrusted with the the job of chairman.

Pavilion Energy said in a statement that it will invest globally across LNG-related businesses, including LNG trading and exploration as well as storage, processing and shipping.

"As economies continue to transform and urbanise, the demand for clean energy, especially liquefied natural gas, is expected to increase," it said.

Pavilion Energy will operate in North America, Europe, Asia, Africa and Australia and invest alongside Temasek, which has recently been increasing investments in the energy and resources sectors. 

Last month, Temasek acquired a 5-per cent stake in Spanish oil company Repsol SA for €1.04 billion ($1.34 billion). (See: Temasek buys 5 % in Spanish energy giant Repsol for $1.35 bn)

Temasek, one of the world's biggest investors with over €115 billion of assets, paid €16.01a share.