Shell Commences LNG operations in Northern ChinaBearing in mind...

Shell Commences LNG operations in Northern China

Bearing in mind that LNG can be hauled in triple road trains for say $1.50 GJ/1000 KM, Shell could well service the Mongolian Transport Market.


GCL Oil & Natural Gas Co. Ltd andShell have signed a framework agreement to explore the development of a jointventure (JV) based in eastern China to market and trade LNG.

Reportedly, the proposed JV would secure LNGsupplies from Shell, and then market this LNG to a receiving terminal plannedby GCL in Jiangsu province.

According to Reuters, GCL is currently planningthree receiving terminals along the east coast of China: Yantai inShandong province; Rudong in Jiangsu; and Maoming in Guangdong.In total, these three terminals will have an annual handling capacity of 14.5million t.

The green pegs are the 3 import terminals.

Looks like the US is going to offer cheap (Oil Shale) LNG to China to help the incumbent President win votes in Shale Oil States.

Regards

OGO