Singapore’s Temasek buys stake in Tanzania gas venture

Singapore. An energy company fully owned by Singapore’s state-linked investment firm Temasek Holdings on Thursday said it will pay US$1.3 billion to buy a 20 percent stake in three gas blocks in Tanzania.

Pavilion Energy, which was formed in April, will buy the stake from London-listed Ophir Energy, it said in a statement.

“The natural gas developments in Tanzania hold tremendous potential — not just for Pavilion Energy but for Singapore and Asia,” said Pavilion chairman Hassan Marican.

“The LNG from the Tanzanian project will provide another source of supply to the Asian markets,” he said in the statement.

Pavilion, which has a committed capital of US$6.9 billion, said the planned acquisition is its “first major investment to build a diversified LNG supply portfolio to meet Asian demand for clean energy”.

The sale is subject to regulatory, governmental and other third party approval by Ophir’s shareholders. The first deliveries from Tanzania are scheduled to start in 2020.

Pavilion’s parent company Temasek is one of Singapore’s two sovereign wealth funds, and has a global portfolio worth Sg$215 billion ($172.29 billion) as of March this year.

Africa, Central Asia and the Middle East account for two percent of its total investments.