US-based energy company Chevron Corporation has, through its subsidiary Chevron U.S.A., signed a binding LNG Sales and Purchase Agreement (SPA) with ENN LNG Trading Company Limited (ENN) for the delivery of liquefied natural gas (LNG) to China from Chevron’s global supply portfolio.
Under the terms of the SPA, ENN will receive up to 0.65 million metric tons per annum (MTPA) of LNG over 10 years, with the first delivery expected to start in 2018 or the first half of 2019.
ENN’s Zhoushan LNG receiving terminal is being constructed and expected to be in operation by 2018.
“This SPA further demonstrates our work to expand our customer base, our strong customer relationships and our commitment to partnerships around the world,” said Mike Wirth, executive vice president, Chevron Midstream and Development.
The SPA 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.