06:45 AM EDT, 06/18/2024 (MT Newswires) -- Shell (SHEL) said Tuesday its Shell Eastern Trading subsidiary has agreed to acquire Pavilion Energy, a liquefied natural gas business, from a subsidiary of Singapore's state-owned wealth fund Temasek.

No price was disclosed, but Shell said the acquisition will be absorbed by its cash capital expenditure guidance, which remains unchanged. The deal is expected to close by Q1 2025, subject to regulatory clearances and other customary conditions, Shell said.

According to the company, Singapore-based Pavilion has an annual contracted supply volume of about 6.5 million metric tons of liquefied natural gas, which it trades, ships, and markets in Europe and Asia.

Shell said the acquisition is part of a plan announced last year to grow its natural gas business by 20% to 30% by 2030.

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