CENTRAL: Shell has edged out companies such as Malaysia’s Petronas to supply LNG through a long-term contract to Hong Kong utility CLP Power, two sources familiar with the matter told Reuters.
Under the deal, Shell will supply about 1.2 million tonnes per annum (mtpa) of LNG for about 10 years starting after 2020, the sources said, declining to be named as they were not authorised to speak to the media. However, the supply agreement will be subject to a final investment decision (FID) for an offshore LNG import terminal that will include a floating storage and regasification unit (FSRU).
This may include talking with third parties from time to time, any conversations are confidential,” a spokeswoman said.
As part of its commitment to the Paris Climate Change Agreement, Hong Kong is aiming to increase the use of natural gas in its total fuel mix for power generation to about 50 percent by 2020 from 22 percent as of 2012.
