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Shell signs North America LNG deal

Financial Times: Shell signs North America LNG deal

By James Boxell

Published: October 15 2004

Royal Dutch/Shell has signed a deal to supply 37m tonnes of liquefied natural gas to Mexico and the US west coast, in what it claims will be the first export of Russian gas to North America. The gas, which will be supplied over a 20-year period, will come from Shell’s huge Sakhalin 2 project in Russia’s far east. As part of the deal, Shell is buying 50 per cent of the capacity of a Mexican LNG plant, which will be used to convert the liquid back into gas for distribution in Mexico and California.

The Mexican LNG plant in Baja California is being built by Sempra, the US energy trading group. James Boxell

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