Shell plc (LSE:SHEL) and Saudi Arabian Oil Company (SASE:2222) (Saudi Aramco), which are competing to buy the assets of Temasek (Temasek Holdings (Private) Limited)-owned liquefied natural gas (LNG) trading firm Pavilion Energy (Pavilion Energy Pte. Ltd.), are now locked in price negotiations after completing the due diligence process, three sources with knowledge of the matter said. The potential sale comes a decade after Singapore's investment company set up Pavilion Energy to focus on LNG-related investments.

The assets could fetch more than USD 2 billion (SGD 2.7 billion), two of the sources said. Pavilion Energy, Shell, Temasek and Barclays, which is advising Temasek, all declined to comment. Saudi Aramco, whose gas unit is overseeing its negotiations, did not respond to a request for comment.

Aramco believes the deal would position it as a global LNG player.