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|Shell Eastern Trading Signs SPA with Brunei LNG Sdn|
|=To purchase 800,000 tpy of LNG for 10 years|
Shell Eastern Trading Pte Ltd. (SETL), a Singapore-based trading unit of Royal Dutch Shell, signed LNG sales and purchase agreement (SPA) with Brunei LNG Sdn.Bhd., based on which SETL will buy 800,000 tons per year of LNG from Brunei LNG for a period of 10 years starting in April 2013.|
Brunei LNG, which operates Brunei LNG Project, capable of producing 7.2 million tpy of LNG, is 50% owned by the Brunei Government, 25% by Shell and 25% by Japan's Mitsubishi Corporation. Shell plans to purchase LNG cargoes from Brunei through its group companies in the world to support the project. At the same time, it is thinking to expand its LNG supply portfolio.
On a long-term SPA basis, total 6.01 million MT of LNG had been supplied by March 2013 to three Japanese companies, such as Tokyo Electric Power Company (TEPCO), Tokyo Gas Co., Ltd., and Osaka Gas Co., Ltd., which bought 4.03 million MT, 1.24 million MT and 740,000 MT respectively.
On the other hand, these three companies reached agreement last March to extend the contract for 10 years effective from April 1st, 2013. At this opportunity, the three companies reduced the contract quantity to 3.4 million tpy in total. TEPCO, Tokyo Gas and Osaka Gas curtailed quantity of each contract to 2.03 million MT, 1 million MT and 370,000 MT.
|last modified : Mon 22 Apr, 2013 [14:03]|