The FINANCIAL — Shell Eastern Trading (Pte.) Ltd, trading as Shell Eastern LNG (Shell), and CPC Corporation, Taiwan (CPC) have signed a Heads of Agreement (HOA) for the long-term supply of liquefied natural gas (LNG) from Shell’s global LNG portfolio.
With this HOA Shell will supply two million tonnes per annum for 20 years starting in 2016.
The agreements were signed recently by CPC and Shell in Taipei and Singapore respectively and exchanged by the parties in Taipei.
This is the first long-term LNG deal between Shell and CPC. The agreement will see Shell become one the main suppliers of LNG to Taiwan.
The terms of the HOA provides for CPC and Shell to work together and conclude detailed sale and purchase agreements in the coming months.