GCL Oil& Natural Gas Co Ltd and Royal Dutch Shell shake their hands and inked a framework agreement in order to set up a joint venture based in eastern China, to market and trade liquefied natural gas (LNG), as Reuters reported.
In fact, the joint venture goals to secure LNG supplies from Shell and trade the fuel to a receiving terminal which GCL is planning in Jiangsu province.
According to Reuters, at the moment both companies haven’t provide any further details, as a Shell spokeswoman confirmed the agreement.
For the records, GCL is a subsidiary of private energy and power firm GCL (Group) Holding and is one of over a dozen Chinese gas terminal developers outside state giants China National Offshore Oil Company, PetroChina and Sinopec Corp that have so far dominated the LNG sector.
Overall, following the COVID-19 outbreak, the oil major Shell, decided to decline its operating costs by up to $4 billion in 2020 and to cut its capital expenditure from $25 billion to $20 billion.