PetroChina in gas deal with Shell

PetroChina signed an agreement with Royal Dutch Shell to buy 40 million tons of liquefied natural gas (LNG) over 20 years, state media reported. The contract price was not disclosed, but it is believed to be in the tens of billions of US dollars. The LNG will be supplied from the Gorgon project in Western Australia, of which Shell owns a 25% share, as well as other projects in the company’s LNG portfolio. Shell China Chief Executive Lim Haw Kuang said last week that prices in the deal would reflect international energy prices for long-term sales.