Shell share price: Company strikes LNG deal with Chubu Electric Power

on May 29, 2014
Updated: Apr 9, 2020
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iNVEZZ.com, Thursday, May 29: Royal Dutch Shell Plc (LON:RDSA) has secured a long-term deal to supply liquefied natural gas (LNG) to Japan’s third largest electric company, Chubu Electric Power. The oil and gas giant described the agreement as further reinforcing its position as a key LNG supplier in the Asian country.

In today’s trading, Shell shares were up 1.1 percent at 2,369.50p as of 12:07 BST. The company’s stock has risen 9.5 percent since the start of the year.
**Twenty years**
Oil and gas supermajor Shell today announced in a statement that its Singapore-based subsidiary, Shell Eastern Trading had signed a sales and purchase agreement with Chubu Electric to supply up to 12 cargoes of LNG a year to the Japanese company. According to the statement the deal is for a period of 20 years and kicks off this October. Shell noted that the agreement is the company’s first long-term LNG deal with Chubu Electric, which it described as a “key customer in Japan”. Chubu supplies power to the eponymous region in central Japan.

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“Shell has a long history of supplying natural gas to Japan, and this agreement demonstrates our continued commitment to the country,” commented Maarten Wetselaar, executive vice president, Shell Integrated Gas. “It further underlines our strength in the LNG market as we mark our 50th year in LNG.”
Wetselaar did not say where the gas to be delivered to Chubu would come from. However, he pointed to Shell’s “strong, diverse portfolio” and its position as “one of the world’s largest LNG producers and marketers”. He noted that the company is “well positioned to respond flexibly to short term changes in demand.”

In the first three months of this year, Japan imported 23.7 million tons of LNG, an increase of one percent from the previous year.
**Shell eyes LNG assets in India**
Earlier this week, Reuters reported that Shell was in talks to buy a stake in an LNG project in Southern India (Shell share price: Company eyes stake in India LNG terminal). The newswire quoted B.C Tripathi, chairman of India’s GAIL Gas, according to whom the company is in talks with the government of the Andhra Pradesh state for buying up to 24 percent in the planned Kakinada LNG project.
GAIL Gas is a co-promoter of the developer and owner of 50 percent in the future project, Andhra Pradesh Gas Distribution Company. Another 26 percent will be owned by Gaz de France.
**As of 13:55 BST buy Aggreko shares at 2368.50p**
**As of 13:55 BST sell Aggreko shares at 2367.50p**

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