Chevron continues to expand its customer base through a 10 year Sales and Purchase Agreement agreement with ENN LNG Trading Co.
Chevron U.S.A. Inc., a wholly owned subsidiary of Chevron Corp., will now be delivering liquefied natural gas (LNG) to China as a part of a newly signed LNG Sales and Purchase Agreement (SPA) between Chevron U.S.A and ENN LNG Trading Co. Ltd. The LNG will be supplied by 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.
“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,” said Mike Wirth, executive vice president, Chevron Midstream and Development. “This SPA further demonstrates our work to expand our customer base, our strong customer relationships and our commitment to partnerships around the world.”
ENN LNG Trading Co. Ltd. is one of the subsidiaries of ENN Energy Holdings Ltd., which is one of the largest natural gas distribution companies in China. ENN Energy Holdings Ltd. operates in 150 cities across 17 provinces and autonomous regions, with over 12 million residential and 56 thousand industrial/commercial customers. ENN’s Zhoushan LNG receiving terminal is being constructed and expected to be in operation by 2018.
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.
Chevron Corp. is one of the world’s leading integrated energy companies. Through its subsidiaries that conduct business worldwide, the company is involved in virtually every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemical products and additives; generates power and produces geothermal energy; and develops and deploys technologies that enhance business value in every aspect of the company’s operations. Chevron is based in San Ramon, Calif.