Shell to sell Gorgan shares to China

Shell Group will conclude a US$1 billion agreement with China for the sales of its Gorgon LNG shares, thereby ensuring a long term supply of liquefied natural gas (LNG) from Western Australia, a mineral abundant land.

The Gorgon project is currently undergoing a reconfiguration phase and will likely approach the state government, to apply for three processing trains with an annual development of five million tons, as opposed to a two-train, ten-million-tons yearly license that was approved previously.

The mid Western Australia has approximately nine billion tons of iron ore reserves, but largely left unexploited due to a lack of proper transportation infrastructure. With this agreement, China will further strengthen ties with Australia as a valuable energy base and tap into more resources.

Jon Chadwick, Executive Vice President of Shell Gas & Power Asia expressed delight with these newly forged ties and the company's further commitment to the Chinese market.

Apart from this deal, there are twelve other Chinese steel mills and other businesses that have invested in stakes in the Australian iron ore mines and downstream processing facilities.