Changfeng Energy Inc. has announced that Sanya Changfeng Clean Energy Co. Ltd., a wholly owned subsidiary of Changfeng, has entered into a LNG supply agreement with a brick manufacturer in Wenchang City, Hainan Province, People’s Republic of China (PRC).
This agreement marks Changfeng’s first step into business outside of Sanya City on Hainan island. The company will supply LNG to the manufacturer for a duration of 10 years beginning from 1 October 2018 to 30 September 2028 at a baseline price of RMB3.30/m3 (according to the agreement, an increase of LNG prices from the upstream supplier will warrant a price adjustment). The brick manufacturer is estimated to consume 1.3 million m3 of natural gas per year.
Sanya Changfeng Clean Energy has also entered into an LNG supply agreement with a rubber manufacturer in Wenchang City. The agreement outlines the supply of LNG to the manufacturer for a duration of 10 years beginning from 8 August 2018 to 7 August 2028 at a price of RMB3.20/m3 (as before, according to the agreement, an increase of LNG prices from the upstream supplier will warrant a price adjustment). The rubber manufacturer is expected to consume 500 000 m3 of LNG per year.
With the government’s policy to turn Hainan island into a free trade port and a role model to low carbon economy, Changfeng is hoping the development will increase the opportunity for natural gas consumption.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/23082018/changfeng-agrees-lng-supply-deal/