Shell in China deal over Gorgon LNG

Petroleum company Royal Dutch Shell has reportedly agreed to sell an annual 2 million tonnes of liquefied natural gas over a 20-year period to a Chinese company, with the undeveloped Gorgon project in Western Australia to be tapped for supplies.

A Chinese news agency reported that the Anglo-Dutch company, which has a 25 per cent stake in the project, has signed the deal with PetroChina Co.

The latest deal follows last year's agreement between the companies whereby Shell agreed to supply 1mt of LNG over 20 years.

The news agency cited China's Shell unit as its source.

Gorgon is a joint venture between Shell, ExxonMobil and Chevron, which is the largest stakeholder and operator of the project.