LNG Deal between PetroChina and Shell

Royal Dutch Shell has agreed to sell LNG to PetroChina from its Gorgon project off the coast of Western Australia. The deal is for one million metric tons of LNG a year over 20 years. It is estimated that Gorgon has 40 trillion cubic feet of gas. Shell's partners in the Gorgon project are Cheveron (50% stake) and ExxonMobil (25% stake). The cost of the project, which is still being developed, is $9 billion and rising. (The Wall Street Journal, 9-5-07)