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OIL AND GAS
Total lands Chinese LNG deal
by Daniel J. Graeber
Paris (UPI) Feb 4, 2016


disclaimer: image is for illustration purposes only

French energy company Total said Thursday it signed a breakthrough binding agreement for the delivery of liquefied natural gas to the Chinese market.

Total signed an agreement to deliver LNG to Chinese energy company ENN for a period of 10 years. Laurent Vivier, president of Total's gas division, said building a partnership in the Chinese market was key to growing the company's LNG portfolio.

"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 in a statement.

U.S. supermajor Chevron in January signed a similar deal with ENN. Liquefied natural gas from Chevron will be sourced from its giant Gorgon project in Australia.

The deal was the second for Chevron in the Chinese market since December, when it signed with China Huadian Green Energy for the delivery of up to 1 million metric tons of LNG per year over 10 years, starting in 2020.

ENN LNG Trading Co. is one of the largest gas distribution companies in China. Total touted itself as a world leader in LNG, noting its broad production footprint in the industry was one of the largest in the business.

ENN expects to complete an LNG receiving terminal in China by 2018. Total did not indicate from where it was sourcing the LNG for China.


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