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4 months ago
Shell's Wetselaar says LNG contract destination clauses "not really crucial"
April 4, 2017 / 3:04 AM / 4 months ago

Shell's Wetselaar says LNG contract destination clauses "not really crucial"

CHIBA, April 4 (Reuters) - Royal Dutch Shell's integrated gas and new energies director, Maarten Wetselaar, said on Tuesday that destination clauses in long-term liquefied natural gas (LNG) supply contracts that have linked suppliers and customers for decades are "not really crucial".

"They're not really crucial in contracts anyway, once you've delivered LNG into a tank, it is quite expensive to get it out again and ship it to someone else," Wetselaar said, speaking on the sidelines of a gas conference in Chiba, Japan.

The Shell executive was responding to questions on efforts made by the world's biggest buyers of the fuel to club together last month to push for more flexible supply contracts that drop cargo destination clauses.

Reporting by Mark Tay; Editing by Tom Hogue and Kenneth Maxwell

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