ExxonMobil will buy a stake from Royal Dutch/ Shell in China's biggest natural gas pipeline project, Shell has revealed. Exxon has agreed in principle to buy part of Shell's 45 per cent stake in the $US5 billion project to deliver gas to Shanghai.
PetroChina, which is the project leader, last December rejected Exxon in favour of Shell to build the pipeline. Shell signed a non-binding agreement with PetroChina on December 29 to take a stake after more than 18 months of talks.
PetroChina heads an international consortium that includes OAO Gazprom, Hong Kong & China Gas as well as Exxon. The Chinese Government has forecast that gas is likely to account for 8% of China's energy supply by 2010, up from 2.8% recorded in 2000.
