Eni inks MoU with China on gas, LNG

Italian energy company Eni said March 30 it signed a memorandum of understanding with a Chinese company to work together on natural gas and LNG both in the domestic Chinese market and internationally.

The MoU with Zhejiang Energy sets up a framework to move forward on joint initiatives in natural gas.

“The MoU builds on the companies’ shared goal of promoting a reduction in emissions by favouring a switch from coal to gas in the production of electricity,” Eni’s statement read. “The initiatives identified in the MoU range from developing long term LNG supply agreements to joint participation in gas/LNG projects.”

China, the second-largest economy in the world behind the US, imported 5.6mn mt of LNG in February, representing a year-on-year increase of nearly 27%. LNG imports totalled 14.04mn mt in the first two months of the year, up 27.2% yr/yr. Chinese gas usage has spiked in recent months as a result of severe cold spells and a rise in economic activity.