LNG player Shell has signed a letter of intent with Guanghui Energy to set up an LNG import terminal in east China.

“Shell and Guanghui Energy have signed a non-binding Letter of Intent that confirms the intention of the two parties to explore the possibility of developing a LNG import terminal project in Qidong, Jiangsu province,” Reuters cited Chen Xiaoni, a spokeswoman for Shell Companies China, as saying.

Shell is the largest IOC LNG supplier to China in terms of contract volume following the two sales and purchase agreements with chinese partners in 2008, which will deliver 5 mtpa of LNG per year in the next decade in addition to other supplies of over 1 mtpa per year to Guangdong and Shanghai via the company’s joint venture projects in Australia and Malaysia, according to Shell’s China website.