* Deal subject to FID on import terminal - source
* Deal is to supply about 1.2 mtpa LNG for about 10 yrs
*
By Jessica Jaganathan
Shell has edged out companies such as
Under the deal, Shell will supply about 1.2 million tonnesper annum (mtpa) of LNG for about 10 years starting after 2020,the sources said, declining to be named as they were notauthorised to speak to the media.
However, the supply agreement will be subject to a finalinvestment decision (FID) for an offshore LNG import terminalthat will include a floating storage and regasification unit(FSRU), one of the sources said.
It was not immediately clear if the deal was binding or amemorandum of understanding.
CLP and Petronas did not immediately reply to requests forcomment. Shell declined to comment on the specific deal and saidit "continuously seeks opportunities to grow and improveprofitability".
"This may include talking with third parties from time totime, any conversations are confidential," a spokeswoman said.
As part of its commitment to the Paris Climate ChangeAgreement,
"A mixture of LNG imports and increased pipeline gas importsfrom
CLP Power is building a new gas-fired generation unit at itsBlack Point Power station at a cost of
It is also planning to develop an offshore import terminalusing the FSRU that will be located in the southern waters of
CLP is now undertaking an environmental impact assessment ofthe Hong Kong Offshore LNG Terminal project, which involves theFSRU, said a spokeswoman from the country's EnvironmentalProtection Department.
Apart from CLP Power, privately-owned Hong Kong ElectricCompany is also looking to import LNG, a source familiar withthe matter said. Hong Kong Electric did not immediately respondto an email seeking comment.
In 2008, CLP scrapped a