ROYAL Dutch Shell said yesterday it has signed an agreement to supply Taiwan’s CPC Corp with 2m tonnes of liquefied natural gas (LNG) per year for 20 years.
“This is the first long-term LNG deal between Shell and CPC. The agreement will see Shell become one the main suppliers of LNG to Taiwan,” the company said in a statement.
Shell declined to comment on the value of the pact, citing company policy, but said it was competitive and linked to oil prices, typical in the Asia Pacific basin.
The deal is not linked to any specific project and Shell will supply the LNG starting in 2016 from its global LNG portfolio, spokeswoman Lina Yap-Abdullah said.
The firm said the specifics of the long-term supply deal will be released over the coming months.
Shell has several LNG projects in Australia starting up around 2016 when the CPC supply contract takes effect.
Shell also has interest in various LNG projects that supply Asia including Brunei LNG, Malaysia LNG Dua, Malaysia LNG Tiga, and Russia's Sakhalin II.
Shell’s London-listed shares closed down 0.4 per cent at £21.42.
City A.M. Reporter