"Shell has started initial talks with authorities in Hainan province for building the terminal," said an official at China National Offshore Oil Corporation.
Shell's initiative to develop the Hainan project coincides with a similar plan by China's largest LNG developer, CNOOC.
A Shell official said the supermajor has regular discussion with its Chinese partners as part of its normal business, but he declined to give details and ruled out speculation it is working with CNOOC on Hainan LNG.
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