Origin Energy agrees to supply LNG to China’s ENN

Origin Energy has signed an agreement for the supply of 500,000t of LNG per year to China-based ENN LNG Trading.

Under the agreement, LNG will be supplied for five years and the companies have an option to lengthen the supply period by an additional five years.

Deliveries of LNG are expected to commence in 2018 or 2019, following the completion of ENN’s Zhoushan receiving terminal in Zhejiang province, China.

Origin Energy integrated gas CEO David Baldwin said: "The heads of agreement represents a significant milestone in the relationship between Origin and ENN, and in the development of Origin’s LNG business."

The company will be able to supply LNG to ENN from its portfolio interests, optimised with third party purchases.

Origin’s latest agreement demonstrates its proposal to increase production from its Australia Pacific LNG (APLNG) venture in Queensland.

Separately, Origin awarded a $24m contract to Valmec to provide specialist technicians, equipment and parts under its preventative and corrective maintenance services for the APLNG project.

Under the contract, which is for an initial period of two years, Valmec will provide services to the APLNG liquefaction plant located on Curtis Island. Valmec plans to begin service works with immediate effect from its facilities in Dalby, Queensland.

Valmec managing director Steve Dropulich said: "This contract is of strategic importance to Valmec as it is aligned with our mission of delivering value to our clients across every aspect of our operations and the entire project lifecycle."

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Image: Origin Energy will supply LNG to ENN for five years. Photo: courtesy of Vichaya Kiatying-Angsulee / FreeDigitalPhotos.net.