The Hague-based LNG giant Shell has reportedly bagged a long-term deal to provide the chilled fuel for a power plant being built by the Chinese Sinolam LNG in Colon, Panama.
Shell is expected to start deliveries to the 441-megawatt power plant in 2020 and continue over a 15-year period.
Advisors on the agreement told Reuters the LNG-to-power project is worth around $900 million and it could require around 400,000 tons of the chilled fuel annually.
Sinolam LNG, a unit of Shanghai Gorgeous, is also building an LNG import facility that will accommodate a floating storage unit.
Commercial advisor for Sinolam LNG on the deal was the energy consultancy Featherwood capital while the legal advice has been provided by Hogan Lovells.
LNG World News Staff