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Shell looking to sell its Russian LNG to Taiwan

Royal Dutch/Shell Group, Europe's top energy company, said it's bidding to sell natural gas to Taiwan from its Sakhalin fields in Russia.

In November, Shell said it will bid to supply 1.7 million tonnes of liquefied natural gas a year to Taiwan Power Co's (台電) new Tatan power project over 25 years, as utilities shift toward using gas. Shell will build a terminal in northern Taiwan to receive the LNG if it wins the bid.

"The Sakhalin project would be well placed for that market," said Shell's Group managing director Malcolm Brinded, who is responsible for the company's gas, power, trading and information technology businesses in East Asia and Australia.

Shell may also supply the LNG to Taiwan from Malaysia LNG Tiga Sdn, in which it owns a 10 percent stake.

Shell and its partners, Japan's Mitsui & Co and Mitsubishi Corp, may invest as much as US$10 billion to develop the Sakhalin-2 oil and gas project, Brinded told reporters at a news conference.

Shell and its partners will need to build two LNG production lines to produce a combined 9.6 million tonnes a year. Gas supply may begin in the second half of 2006. Two oil production platforms, oil and gas pipelines and LNG plants will also be built.
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