FRENCH oil and gas major Total will deliver 500,000 tonnes of liquefied natural gas to Chinese energy distributor ENN LNG Trading for 10 years under a deal signed in February.
Total said the deliveries would be sourced from Total’s global LNG portfolio and are expected to begin in 2018, upon completion of ENN’s Zhoushan LNG receiving terminal.
Company president of gas Laurent Vivier said building partnerships with LNG buyers in China allowed it to grow its presence in the market.
“Total is the first major to sign a binding LNG supply agreement with ENN, one of the largest natural gas distributors in China,” he said.
Total’s announcement comes after Chevron’s Australian subsidiaries signed a non-binding heads of agreement – also to deliver 500,000 tonnes of LNG per year for 10 years – in January, with the gas to come from the company’s Gorgon project.
ENN LNG Trading Company is a subsidiary of ENN Energy Holdings, one of the largest natural gas distribution companies in China.
ENN Energy Holdings operates in 146 cities across 17 provinces and autonomous regions, with over 11.3 million residential and 52,000 industrial/commercial customers, Chevron said.