Shell signs SPA with Brunei LNG for 10 years

Shell Eastern Trading Pte Limited (SETL), the Singapore-based trading unit of Royal Dutch Shell, has signed a liquefied natural gas (LNG) sales and purchase agreement (SPA) with Brunei LNG Sendirian Berhad. According to the SPA, SETL will purchase 800,000 tonnes of LNG annually from Brunei LNG for a period of 10 years starting from April 2013. Brunei LNG, which operates the Brunei LNG project with an annual capacity of 7.2 million tonnes (mt), is jointly owned by the Brunei government (50 per cent), Shell (25 per cent), and Japan’s Mitsubishi Corporation (25 per cent). Shell plans to purchase LNG cargoes from Brunei through its group companies across the world to support the project.