Temasek sets up energy firm to tap rising demand

SINGAPORE — Temasek Holdings has set up an energy company to tap Asia’s growing energy demand.

Pavilion Energy will have an initial authorised capital of S$1 billion and should be operational by September.

The company noted that as the region’s economies continue to transform and urbanise, the demand for clean energy, especially liquefied natural gas (LNG), is expected to increase. According to the International Energy Agency, the global use of gas will rise 50 per cent by 2035 from 2010 levels.

Pavilion said it will look to partner with energy industry leaders and players to meet the region’s growing gas needs. It may also co-invest alongside Temasek, which has been stepping up its investments in the energy and resource sectors over the last few years.

Mr Seah Moon Ming has been appointed as Pavilion’s Chief Executive Officer. Mr Seah joined Temasek in March as Senior Managing Director, Special Projects, to establish the new energy business entity.

Mr Seah said: “To secure long term and stable supply of LNG to our customers in Singapore and the Asian region, we will be sourcing our LNG supply from multiple sources and various partners in North America, Europe, Asia, Africa and Australia.”

“We also expect to participate and invest in various parts of the LNG value chain to ensure long-term LNG supply. These could include LNG trading; investing alongside international oil and gas companies as partners to develop upstream LNG projects, building of LNG storage and re-gasification terminals, and investing in LNG shipping,” he added.