Gas Week

EWN Publishing

Shell deal: 1 million tonnes a year of LNG to China for 20 years; Western Australia’s Channar mine to expand, Yilgarn gears up

Posted by gasweek on 26 September, 2007

Chinese President Hu Jintao’s visit to Perth had turned up the heat on West Australian Premier Alan Carpenter to choose between major infrastructure proposals being pushed by the state’s two biggest export partners, China and Japan, reported The Australian Financial Review (5/9/2007, p. 10).

Meeting, greeting and signing: During a whirlwind 18-hour visit punctuated by the signing of a series of multibillion-dollar agreements, Mr Hu toured BHP Billiton’s min­erals processing laboratory and Rio Tinto’s Kwinana pig iron plant, meeting incoming BHP Billiton boss Marius ‘Coppers and Rio Tinto iron ore chief executive Sam Walsh,” the AFR reported. “The visit also included a brief meeting between Mr Hu and Mr Carpenter and his cabinet, during which China’s investment in the state’s iron ore sector was discussed.”

Chinese consortium eyes Mid West: “Rio and its joint venture partner at the Channar mine in the Pilbara – major Chinese steel mill Sinosteel – signed agreements over the expansion of the 20-year-old mine”, the newspaper said. “Channar represented one of the first major investments in Australia out of China. Members of Mr Hu’s delegation also attended the signing of a major investment by five Chinese com­panies in private Perth-based group Yilgarn Infrastructure to support its proposal to build a port near Geraldton and associated rail infrastructure to service a suite of iron ore mines earmarked for the Mid West region. The signing finalised a $750 mil­lion equity deal between Yilgam and Sinosteel, China Railway Engineer­ing Corporation, China Communi­cations Construction Company, China Railway Materials Commer­cial Corporation, and Anshan Iron and Steel Group Corporation.”

Shell in 20-year LNG deal: “Meanwhile,” the AFR reported, “petroleum giant Shell used the first visit to Perth by a Chinese president to announce a deal under which the company will ship 1 million tonnes of liquified natural gas to China each year for 20 years. The memorandum of understand­ing signed between Shell and Petro-China is the largest deal of its kind since Woodside signed a $25 billion, 20-year agreement to supply China with LNG from its North West Shelf project.”

The Australian Financial Review, 5/9/2007, p. 10

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