China’s Beijing Gas in Talks with Shell over LNG Deal
02.21.2022 By Ricardo Perez - NEWS

February 21, 2022 [Offshore-Technology] – Beijing Gas is seeking 1.5 million tonnes of super-chilled fuel from Shell, over a period of ten years.

 

China’s Beijing Gas Group is negotiating with Shell to sign a liquefied natural gas (LNG) supply and purchase deal in the second quarter of 2022, reported Reuters, citing a source with direct knowledge of the matter.

Municipal government-backed Beijing Gas, which started talks last month, is seeking 1.5 million tonnes of the super-chilled fuel a year, from Shell.

The potential ten-year deal could mark the first long-term LNG contract for the state-owned piped gas distributor. If the talks are successful, the agreement would be effective from 2023.

The news agency cited the source as saying: “A deal is expected in the second quarter, at the latest.”

Shell plans to supply LNG into a new $3.16bn (CNY20bn) terminal in Tianjin. The terminal, with a capacity of five million tonnes a year, is planned to be commissioned at the end of 2022.

To be connected to Beijing via a 300km pipeline, the terminal is intended to provide emergency supplies and storage for the region.

Beijing Gas is also in talks with undisclosed US exporters for similar long-term supplies.

In the recent months, several Chinese companies have signed LNG supply deals for more than ten million tonnes of annual LNG supply, from the US.

Shell was one of the three suppliers shortlisted by Beijing Gas in 2021. Other firms were Qatar Petroleum and China’s CNOOC.

Last month, Shell renewed talks with the UK’s offshore regulators over the Jackdaw gas field development, in the North Sea.

The company had earlier planned to extract and burn the unwanted CO₂ from the gas on the Shearwater platform. The resulting treated gas was to be transported onshore, via a new pipeline.

Despite this, the plan was later rejected by the Offshore Petroleum Regulator for Environment and Decommissioning (OPRED).

Click Here to Access a 10,390 Tank Terminal Database With a Pro Trial

10,390 terminals as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

Germany Inks LNG Deal As Chancellor Visits Gulf to Secure Energy
09.26.2022 - NEWS
September 26, 2022 [Reuters] – German utility RWE has signed a deal with Abu Dhabi National Oil... Read More
Eastward Gas Flows Via Yamal-Europe Stop, Flows Via Ukraine Stable
09.26.2022 - NEWS
September 26, 2022 [Reuters] – Eastbound gas flows via the Yamal-Europe pipeline to Poland from... Read More
Netherlands Buying Diesel Before Winter
09.26.2022 - NEWS
September 26, 2022 [RIGZONE] – The Netherlands is purchasing millions of barrels of diesel ... Read More
China to Offer Europe a Lifeline this Winter with More Diesel Exports
09.26.2022 - NEWS
September 26, 2022 [The Straits Time] – China’s refiners are set to release huge stoc... Read More