Total and Shenergy Group have signed binding agreements for the supply of up to 1.4 million tpy of LNG from Total, as well as the creation of a joint venture (JV) to expand LNG marketing in China.
The JV (Total 49%, Shenergy Group 51%) will sell LNG, supplied by Total, to customers in Shanghai and throughout the neighbouring Yangtze River Delta regions, one of the main LNG markets in China. Additionally, Total will supply LNG to Shanghai Gas, the natural gas subsidiary of Shenergy Group, for its distribution business.
“This deal with Shenergy Group is a great opportunity to partner with an experienced gas and LNG player with strong ambitions, as well as a unique entry point into the downstream LNG market in China. This partnership is in line with our strategy to grow along the entire gas value chain,” said Stéphane Michel, President Gas, Renewables & Power at Total. “LNG is playing a key role in meeting the growing demand for natural gas, especially in China where we are pleased to contribute to the diversification of the energy mix.”
“The Shenergy Group is very pleased to sign this partnership agreement with Total, which secures a long-term, reliable supply of LNG for the Yangtze River Delta. The JV with Total will develop the LNG downstream market and support the objective of Shenergy Group to improve the air quality and reduce emissions in the region,” said Mr. Wang Zhehong, Vice President of Shenergy Group and Chairman of Shanghai Gas.
The LNG supply to the JV and Shanghai gas distribution business will be sourced from global LNG portfolio of Total through a long-term LNG sale and purchase agreement ramping up to 1.4 million tpy for a term of 20 years. It will be delivered to Shenergy’s Chinese LNG terminals.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/26032021/total-and-shenergy-group-team-up-on-chinese-lng/