Zhonghua Gas, Shenergy Group Sign LNG MoU
Zhonghua Gas Holdings has signed a memorandum of understanding with Shanghai Jiulian, a wholly-owned subsidiary of Shenergy Group on cooperation in the area of LNG, it said October 24.
Zhonghua Gas and Shenergy Jiulian will form a 60:40 joint venture to co-explore end-users market in China’s Yangtze River Delta region. The JV will be principally engaged in the sale of LNG and LPG, engineering of LNG pipeline, sale, installation, maintenance of LNG delivery equipment, technology development, consulting and transfer of heating system, technology development of new energy, etc, the company said.
Zhonghua Gas said it intends to integrate the gas supply business of its existing customer resources in the Yangtze River Delta into the LNG sales channel and business of the JV. It will also be responsible for obtaining the qualification, license, permits, and approval for the JV to be engaged in LNG storage, transportation, sales and other related businesses as soon as possible.
Shenergy Jiulian as the LNG supplier for the JV will guarantee the sufficiency and stability of LNG supply and give necessary supports for the respective businesses of the JV, it said.
Shenergy Group is the contractor for Shanghai's major energy infrastructure as well as supplier for major energy including electricity and gas. In 2018, the scale of its LNG operation reached 9bn m3, accounting for more than 90% of the market share in Shanghai, it said.