The LNG terminal, which is part of the first phase of the $1.7bn Dawei project, is expected to have an annual capacity of six million tons, reported Reuters earlier.
Under the deal, Shell will provide technical expertise to develop the terminal in Dawei as well as supply LNG to customers.
The project will comprise an LNG receiving and re-gasification terminal at Dawei special economic zone. It is expected to serve as a center for offloading LNG for on-shipping to businesses in Dawei, Thailand and Myanmar, reported Myanmar Times.
Shell Global LNG vice-president Roger Bounds said: "We believe that this opportunity will enable Shell, together with its partners, to bring its global expertise in LNG to Myanmar meeting the country’s energy aspirations.
"The LNG market is growing. It is very strong even though the price is low at present due to continuous falling of international crude oil price."
The Dawei special economic zone, Italian-Thai Development and its partners have signed concession agreements for first phase of the Dawei project, which includes a 450MW gas-fired power plant, small port, and a two-lane road to Thailand.
