Oil & Gas
Total & Shenergy to Jointly Market LNG in China
Total and Shenergy Group, the leading energy player in Shanghai, have signed binding agreements for the supply of up to 1.4 million tonnes per annum of
Total and Shenergy Group, the leading energy player in Shanghai, have signed binding agreements for the supply of up to 1.4 million tonnes per annum of Liquefied Natural Gas from Total, as well as the creation of a joint venture to expand LNG marketing in China. The joint venture (Total 49%, Shenergy Group 51%) will sell LNG, supplied by Total, to customers in Shanghai and throughout the neighboring Yangtze River Delta regions, one of the main LNG markets in China. Additionally, Total will supply LNG to Shanghai Gas, the natural gas subsidiary of Shenergy Group, for its distribution business.
The LNG supply to the JV and Shanghai gas distribution business will be sourced from global LNG portfolio of Total through a long-term LNG Sale and Purchase agreement ramping up to 1.4 million tons per annum for a term of twenty years. It will be delivered to Shenergy’s Chinese LNG terminals.
Shenergy (Group) Co Ltd, founded in 1987, is a Shanghai-based state-owned company that is engaged in power generation, gas industry, finance, cable industry, energy service and trade. Its subsidiary Shanghai Gas integrates natural gas procurement, pipeline network distribution and sales services, which supplied 9.8 billion cubic meters of natural gas and served 6.3 million natural gas users in 2019.