Chevron to supply gas to China’s ENN

Chevron’s wholly owned subsidiary Chevron USA has signed an agreement to supply liquefied natural gas (LNG) to ENN LNG Trading.

Under the sales and purchase agreement (SPA), ENN will receive up to 0.65 million tonnes per annum (mtpa) of LNG from Chevron’s global supply portfolio for a period of ten years.

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

Chevron midstream and development executive vice-president Mike Wirth 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.”

Chevron said that the delivery requirements will be fulfilled by the company’s growing LNG portfolio, including its Australian LNG interests at Gorgon, Wheatstone, as well as the North West Shelf.

ENN LNG Trading is a subsidiary of ENN Energy, a natural gas distribution company in China.

Operating in 150 cities across 17 provinces and autonomous regions, ENN Energy serves more than 12 million residential and 56 thousand industrial / commercial customers.

The company is constructing the Zhoushan LNG receiving terminal, which is expected to be operational by 2018.

Last month, Chevron USA signed an agreement to supply up to 0.5 million tonnes per annum of LNG over five years to Singapore Carbon Hydrogen Energy.

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Image: The Asia Excellence liquefied natural gas carrier. Photo: courtesy of Business Wire.