Shell signs HoA with three customers for gas supply

Vol 4, PW 26 (14 Feb 01) News in Brief
     

Shell has signed detailed 'Heads of Agreement' with three potential customers for LNG from its terminal at Hazira.

When contacted, Shell confirmed that it has signed the three HoAs but declined to reveal the identity of the three companies. One can only speculate that they are Gujarat based, and most likely include Essar Power, Essar Steel, and other power plants in the vicinity of its 5m t/y plant at Hazira.

"A Heads of Agreement is much more solid than an MoU," confirms a banker, "It's more than sitting down and revealing a vague intention to buy, it's actually sitting down and talking numbers." Shell reckons LNG from its Hazira terminal will be available by December 2003. It hasn't yet confirmed where it is coming from.