Origin to Supply LNG to ENN

Australian Origin Energy December 21 announced it had signed an LNG sale and purchase agreement (SPA) with China's ENN LNG Trading Company.

It follows a non-binding heads of agreement announced between Origin and ENN earlier this year.

Origin will supply 280,000 metric tons of LNG per year for a period of five years to China, with a provision to extend the supply period by an additional five years. Deliveries of LNG under the SPA are expected to begin in calendar year 2018 or 2019 following completion of ENN’s Zhoushan LNG receiving terminal in Zhejiang province, China.

ENN is the first private firm in China to get a nod from the government to build an LNG import terminal. ENN plans to build large scale LNG tanks, unloading berths, bunkering berths, roll-vessel berths, gasification facilities and related utilities. The terminal would be capable of receiving 3mn mt/yr.

Shardul Sharma