SCT&E LNG Inc. and the JOVO Group have announced that they have signed a long-term, multi-billion dollar cooperation agreement. The agreement, signed at the China-U.S. Economic and Trade Cooperation Conference in New York City, US, is the first of its kind between a US LNG developer and a private Chinese LNG terminal owner.
The agreement provides for long-term offtake of LNG from the future SCT&E LNG export terminal to be built on Monkey Island in Cameron Parish, Louisiana, US, and a potential equity investment into the SCT&E LNG facility by the JOVO Group.
Mr Zhang Jianguo, Chairman of the JOVO Group, said: “We evaluated multiple projects to supply LNG to our receiving terminal and selected the SCT&E LNG project. During the review process, my team and I built a strong relationship with Mr Greg Michaels, Chairman of SCT&E LNG, and his team, and we have confidence in the project and our relationship moving forward. The JOVO Group currently imports LNG and has plans to expand its LNG import capabilities to further leverage the natural gas distribution network in Southern China.”
Greg Michaels, Chairman of SCT&E LNG, added: “We are extremely confident in the JOVO Group’s team and look forward to working together. We are excited about this agreement and the ability to supply LNG to meet the rapidly-growing demand for clean burning energy in Southern China, especially the Guandong Province.”
The Guandong Province boasts one of the country’s most prosperous economies, and the region's rapid economic development has been met with high energy consumption, primarily through the use of coal. The Guandong province has one of the highest capacities of coal burning power, and Chinese leadership is now looking to curb its coal consumption by adopting clean burning energy alternatives, such as natural gas in the form of LNG. The agreement between SCT&E LNG and the JOVO Group represents a positive step forward for the region in meeting its country’s national air quality standards.
Edited from press release by Callum O'Reilly
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