UPDATE 1-Shell says signs LNG supply agreement with Taiwan's CPC

Mon May 16, 2011 9:00am GMT
 

* Shell makes first long-term LNG deal with CPC

* Shell to supply 2 mln tonnes/yr over 20 years

* Deal not linked to a specific project (Adds details on the deal, background)

PERTH, May 16 (Reuters) - Royal Dutch Shell (RDSa.L: Quote) said on Monday it has signed an agreement to supply Taiwan's CPC Corp with 2 million 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.

Shell has several LNG projects in Australia starting up around 2016 when the CPC supply contract takes effect.

The company's Prelude floating LNG project in northwest Australia is expected to come online in 2016. The Shell Australia/Arrow coal seam gas to LNG project in Australia's eastern Queensland state may come online as early as 2015, according to some estimates.[ID:nL3E7FL1A2][ID:nL3E7EU0S4]   Continued...

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