Beijing holding a “wonderful piece of leverage”
by Veselin Valchev: Friday, 20 Nov 2015
Royal Dutch Shell Plc (LON:RDSA) might have to shell out in order to get regulatory approval from Chinese authorities for its proposed takeover of fellow UK energy giant BG Group.
According to unnamed sources cited by Reuters, the Chinese ministry of commerce has requested that Shell review liquefied natural gas (LNG) prices in long-term supply contracts with the nation’s top energy companies – CNPC, CNOOC and Sinopec.
“It’s a reasonable request given the premiums Chinese and other Asian buyers are paying for long-term LNG versus those for Europe and America. The market is oversupplied, and this situation may well last through the next five to 10 years,” said a gas official with one Chinese state energy firm.
According to several sources, Beijing also wants to extend current contract terms in a bid to lower supply volumes at a time of flagging demand.
Analysts said Shell, one of the top LNG suppliers to China, would be willing to make some concessions to keep the deal on track.
“Reducing the volumes might be a price Shell would be prepared to pay to gain approval from the Chinese regulator. It would be possible to find markets for any volumes not taken by Chinese buyers so the impact on revenues would be limited,” according to independent energy consultant Andy Flower.
Shell and China’s commerce ministry declined to comment on the negotiations.
The approval of the BG deal, which Shell has said is still compelling despite low oil prices, is a “wonderful piece of leverage” for Beijing, one of the sources said, while the demands come as earlier this month the Chinese regulatory approval process entered its third and final 60-day phase.
Meanwhile, the Australian Competition and Consumer Commission (ACCC) granted its unconditional approval for the merger this week, despite earlier reservations on competition grounds. The deal has now received three of the five mandatory regulatory clearances required for the merger to go through. Besides China, Shell still needs to convince Australia’s Foreign Investment Review Board of the tie-up merits.
Shell’s share price closed Thursday’s session with a 1.6 percent gain at 1,666.00p. Year-to-date, Shell’s stock is still down more than 22 percent.
As of 07:51 GMT, Friday, 20 November, Royal Dutch Shell Plc ‘A’ share price is 1,666.00p.
This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.
Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
MORE DETAILS:
A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
