PetroChina signs LNG deal with Shell
PetroChina<601857><857>, the nation’s top oil producer, has inked an agreement with Royal Dutch Shell Plc on Monday to purchase up to 40 million tons of liquefied natural gas (LNG), the Shanghai Daily reported.
PetroChina has clinched a 20-year binding sales and purchase agreement with Shell to purchase as much as 2 million tons of LNG per year, according to a statement released by Shell, Europe’s largest oil company. However, Shell didn’t disclose the contract price. Industry analysts indicated the deal worth tens of billions of U.S. dollars.
The contract price would reflect international energy prices for long-term sales and would be “good” for China, sources said, citing Lim Haw Kuang, executive chairman of Shell China, as saying.
The LNG will come from the Gorgon project in Western Australia, in which Shell holds a 25% stake, and Shell’s other LNG portfolio. PetroChina is planning receiving terminals in Nantong, Jiangsu Province, Tangshan, Hebei Province and Dalian, Liaoning Province.
In April this year, the Anglo-Dutch oil company signed a 25-year contract with PetroChina to supply 3 million tons of LNG per year to the latter.
Tags: LNG, PetroChina, Shell