Shell to deliver Qatar LNG to PetroChina as planned , says official

Reuters , Tuesday 12 Apr 2011

Shell and Qatargas will begin sending more than 3m tonnes of super-chilled fuel to Petro China each year as stipulated in an earlier agreement

Royal Dutch Shell will start delivering liquefied natural gas (LNG) it owns from a Qatar project to PetroChina's first LNG receiving terminal this year as planned, a Shell official in China said on Tuesday.

Under earlier agreements, Shell and Qatargas, its project partner in Qatar, were scheduled to begin sending in 2011 3 million tonnes of the super-chilled fuel each year from the Qatargas IV project to Rudong terminal in eastern China's Jiangsu province.

Julia Xu, a director of Shell's China exploration and production unit, said on the sidelines of the Asia Gas Congress in Beijing that the exact timing of the deliveries of the first few cargos would be subject to PetroChina's arrangements.

The Rudong terminal was due to receive its first LNG cargo, a 145,000-tonne shipment, on April 26 and a second of the same size several weeks later, both sourced from spot market, before supplying gas to users near the end of June.

PetroChina runs its LNG business mostly via listed unit Kunlun Energy after a series of asset transfers in the past two years.

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