BEIJING, Aug 18 (Reuters) - Royal Dutch Shell hasentered a framework deal with a Chinese energy firm to jointlypurchase and distribute liquefied natural gas, Shell said onTuesday, a rare cooperation between a global energy company anda local private player.
Shell signed the non-binding framework agreement withGuanghui Energy Co Ltd, which is building a gasreceiving terminal in Qidong of Jiangsu province with a designedannual handling capacity of around 600,000 tonnes in its firstphase.
Chinese companies other than the country's dominant energygiants are emerging as LNG importers after Beijing startedallowing third-party access to import terminals built by themajors and private investment in the sector.
Instead of a previous intent to be involved in building andoperating the terminal, Shell, one of China's top LNG suppliers,is now looking at only purchasing and marketing LNG, gas that issuper-chilled in liquid form and transported in specializedtankers.
"Our cooperation with Guanghui has evolved and the currentscope under discussion is a joint venture to purchase, importand on sell LNG through the Qidong terminal," Shell said in anemailed statement.
Guanghui Energy, one of the country's pioneer independentplayers in the LNG industry, has plans to expand its Qidongterminal with phase two and three developments, company andindustry sources have said.
(Reporting by Chen Aizhu; Editing by Gopakumar Warrier)
