Temasek unit buys Tanzania LNG asset stake

[SINGAPORE] Armed with a war chest of US$6.9 billion, Temasek-owned Pavilion Energy has bought into its first upstream LNG asset, paying US$1.288 billion for a 20 per cent stake in offshore liquefied natural gas exploration concessions in Tanzania.

The company announced yesterday that it has entered into an agreement with Ophir Energy to purchase a one-fifth interest in Tanzania Blocks 1, 3 and 4, with first gas deliveries expected in 2020.

It marks Pavilion's first major upstream investment to build a diversified LNG portfolio to meet fast-growing Asian gas demand.