Shell closes in on deal to supply Singapore with LNG

Shell is close to winning a deal to supply Singapore with liquefied natural gas (LNG), according to a news report.

2 sources familiar to the matter told Reuters that the firm has edged out major competitors including Malaysia’s Petronas to supply LNG via a long-term contract to Hong Kong’s utility CLP Power.

Shell would become the 1st company to supply LNG to the city if the deal goes through.

It would see Shell supply around 1.2 million tonnes per annum for around 10 years, starting after 2020, according to the Reuters report.

Hong Kong is aiming to increase the use of LNG in its fuel mix to around 50% by 2020 as part of its commitment to the Paris Climate Change Agreement.