Chevron, China’s ENN signs 10-year LNG purchase agreement

Chevron Corporation’s wholly-owned subsidiary, Chevron USA, Inc., recently signed a binding sales and purchase agreement with China’s ENN LNG Trading Company Limited (ENN) for the delivery of liquefied natural gas (LNG) to the country from Chevron’s supply portfolio.

The Chinese company will receive up to 650,000 metric tons per annum (MTPA) of LNG over 10 years. The first delivery is expected to happen in 2018 or the first half of 2019.

Mike Wirth, executive vice president, Chevron Midstream and Development, said that Chevron’s commitment to gas is clear as they have been in the natural gas business for over 100 years.  The company is also positioned to be one of the world’s top LNG suppliers, he added.

ENN LNG Trading Company Limited is one of the subsidiaries of ENN Energy Holding Ltd., which is one of the largest natural gas distribution companies in China. ENN Energy Holdings Ltd. operates in 150 cities across 17 provinces and autonomous regions, with over 12 million residential and 56,000 industrial/commercial customers.

ENN’s Zhoushan LNG receiving terminal is being constructed and expected to be in operation by 2018.

The agreement’s delivery requirements are expected to be fulfilled by Chevron’s growing LNG portfolio, including the company’s Australian LNG interests at Gorgon, Wheatstone and the North West Shelf.