Reuters: In Shell-BG Review, China Wants Concessions on Huge Gas Deals

Chinese regulators vetting Royal Dutch Shell's  proposed merger with BG Group are pressing the Anglo-Dutch company to sweeten long-term gas supply contracts in a move that could cast new doubt over the near-term benefits of the $70 billion tie-up.

For China, the opportunity to re-negotiate existing liquefied natural gas (LNG) supply contracts with Shell, which combined with BG would supply around 30 percent of its imports by 2017, comes at an ideal time because the world's top energy consumer faces a large surfeit over the next five years.

For Shell, any revision of the contracts with China could dilute the near-term financial benefits of a merger that has already raised concern among some investors and analysts because of stubbornly low oil prices.

Shell declared it wanted to become the world's top trader of LNG when it agreed a takeover of BG in April. MORE