PetroChina in talks to buy LNG from Shell

PetroChina Co. is in talks with Royal Dutch Shell PLC to import 1 million metric tons of liquefied natural gas a year from Australia's Gorgon gas project, oil industry newspaper Upstream reported Friday, citing unnamed industry sources.

The volumes are being negotiated in addition to the 3 million tons of LNG a year that PetroChina wants to buy from Woodside Petroleum Ltd. (WPL.AU), for which it will pay about $10 per million British thermal units, Upstream said.

Dow Jones Newswires reported earlier that PetroChina and Woodside were close to a deal on LNG supply.

The report said it isn't clear when the deal with Shell will be concluded.
When contacted by Dow Jones Newswires about a possible deal with PetroChina, Shell spokeswoman Anita Harben said: "We don't comment on market speculation."