Chevron signs 10-year LNG agreement with China’s ENN

Chevron signs 10-year LNG agreement with China’s ENN

Chevron Corp (NYSE:CVX) has signed a 10-year term supply deal with China’s ENN to supply up to 650,000 metric tonnes per year of LNG to China from its global supply portfolio.

Chevron expects to supply ENN through its existing LNG assets, “including the company’s Australian LNG interests at Gorgon, Wheatstone and the North West Shelf.”

ENN, subsidiary of ENN Energy Holding, one of China’s largest gas distributors operates in 150 cities across 17 provinces and autonomous regions with over 56,000 customers.

ENN’s Zhoushan LNG receiving terminal is currently in construction and is expected to begin operation by 2018.

Mike Wirth, Chevron’s VP of midstream and development said: “Chevron’s commitment to gas is clear. We’ve been in the natural gas business for more than 100 years, and we’re positioned to become one of the top LNG suppliers in the world.

“This SPA further demonstrates our work to expand our customer base, our strong customer relationships and our commitment to partnerships around the world.”

The first LNG delivery is expected to begin in 2018 or the first half of 2019.

@RGNOnline