Shell, CPC Corp sign long term LNG supply deal

Shell Eastern Trading has entered into a heads of agreement (HOA) with Taiwanese state-owned oil and gas firm CPC Corporation for the long-term supply of liquefied natural gas (LNG) to Taiwan.

Under the deal, Shell will supply two million tonnes per annum for 20 years starting in 2016 from its global LNG portfolio.

The agreement, which is the first long-term LNG supply deal between the companies, will see Shell become one the main suppliers of LNG to Taiwan, the company said.

According to Shell, the terms of the HOA provides for the companies to work together and conclude detailed sale and purchase agreements in the coming months.