皇冠体育app's top oil and gas producer has struck a deal with Europe's largest oil company to buy liquefied natural gas (LNG) from Australia, to meet the country's soaring demand for clean fuel.
Petro皇冠体育app International Co Ltd, a branch of Petro皇冠体育app, and Shell Eastern LNG signed a long-term supply agreement for LNG from the Gorgon project in Western Australia, Shell said on its website yesterday.
Shell and Petro皇冠体育app will draw up a detailed LNG sale and purchase agreement by the end of next year, according to Shell's statement.
"Details such as price of delivery are still to be agreed, but the deal will certainly boost 皇冠体育app's clean energy supply," said Han Xiaoping, an independent analyst with energy portal 皇冠体育app5e.com.
Han said the deal could also give Petro皇冠体育app scope to get involved in upstream gas exploration and production on the Gorgon project.
"Petro皇冠体育app could use its established natural gas distribution networks in 皇冠体育app to great effect if it can get involved in upstream production at Gorgon," said Han.
Shell's Beijing office was not available for comment yesterday.
However, Jon Chadwick, executive vice-president of Shell Gas and Power Asia, said the deal "sets a new benchmark for LNG supplies into 皇冠体育app and underlines Shell's commitment to Chinese LNG customers and to the Gorgon project".
Shell will sell 1 million tons per annum of LNG to Petro皇冠体育app during the 20-year contract, Shell said.
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