Pavilion Energy Pte. Ltd, with an initial authorised capital of S$1 billion ($805.25 million), expects to invest in upstream project development, build storage and re-gasification terminals, and invest in LNG shipping, said Seah Moon Ming, the new company`s chief executive officer, in a statement.
Seah was hired from Singapore Technologies Engineering Ltd in March to tap investment opportunities in the LNG sector.
Temasek may co-invest alongside the new company, which is expected to commence operation in September, the statement added.
Pavilion Energy has appointed Hassan Marican, the former president and chief executive of Malaysian state oil company Petronas, as the chairman of its board. It has also enlisted Liew Mun Leong, former CEO of the CapitaLand Group, to join its senior management team.
Temasek, which manages about S$198 billion, has been boosting investments in the energy sector, which accounted for 6 percent of its portfolio in its last financial year that ended in March 2012, up from 3 percent a year earlier.
It bought a 5 percent stake in Repsol for $1.4 billion to lift its holding in the Spanish oil group to 6.3 percent, Repsol said last month.
Asia accounted for 71 percent of global LNG demand at the end of 2012, according to Paris-based International Group of LNG Importers (GIIGNL).
Singapore expects its first LNG terminal to kick off operations this year, with an expansion plan to more than double its processing capacity by 2017.