Total and Shenergy Group, the main vitality participant in Shanghai, have signed binding agreements for the availability of as much as 1.four million tons each year of Liquefied Natural Gas (LNG) from Total, in addition to the creation of a three way partnership to increase LNG advertising in China.
The three way partnership (Total 49%, Shenergy Group 51%) will promote LNG, equipped by Total, to prospects in Shanghai and all through the neighboring Yangtze River Delta areas, one of many principal LNG markets in China. Additionally, Total will provide LNG to Shanghai Gas, the pure fuel subsidiary of Shenergy Group, for its distribution enterprise.
“This cope with Shenergy Group is a superb alternative to companion with an skilled Gas & LNG participant with sturdy ambitions, in addition to a novel entry level into the downstream LNG market in China. This partnership is in step with our technique to develop alongside your entire fuel worth chain,” stated Stéphane Michel, President Gas, Renewables & Power at Total. “LNG is taking part in a key function in assembly the rising demand for pure fuel, particularly in China the place we’re happy to contribute to the diversification of the vitality combine.”
“The Shenergy Group may be very happy to signal this partnership settlement with Total, which secures a long-term, dependable provide of LNG for the Yangtze River Delta. The Joint Venture with Total will develop the LNG downstream market and assist the target of Shenergy Group to enhance the air high quality and scale back emissions within the area,” stated Mr. Wang Zhehong, Vice President of Shenergy Group and Chairman of Shanghai Gas.
The LNG provide to the JV and Shanghai fuel distribution enterprise will likely be sourced from international LNG portfolio of Total by way of a long-term LNG Sale and Purchase settlement ramping as much as 1.four million tons each year for a time period of twenty years. It will likely be delivered to Shenergy’s Chinese LNG terminals.
Shenergy (Group) Co., Ltd., based in 1987, is a Shanghai-based state-owned firm that’s engaged in energy era, fuel trade, finance, cable trade, vitality service and commerce. Its subsidiary Shanghai Gas integrates pure fuel procurement, pipeline community distribution and gross sales companies, which equipped 9.eight billion cubic meters of pure fuel and served 6.three million pure fuel customers in 2019.
(Source and picture: Total)
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