SCT&E LNG on Tuesday informed it has signed a long-term agreement with JOVO for offtake of liquefied natural gas from the company’s export terminal to be built on Monkey Island in Cameron Parish, Louisiana.
Additionally, the agreement allows for a potential equity investment into the SCT&E LNG facility by JOVO Group, the statement reveals.
Zhang Jianguo , chairman of the JOVO Group, private Chinese LNG terminal owner, said the company plans to expand its LNG import capabilities in order to leverage the natural gas distribution network in Southern China, especially the Guangdong Province.
In its attempt to cut on coal consumption, Chinese government called for the adoption of alternative fuels, such as LNG.
“ The agreement between SCT&E LNG and the JOVO Group represents a positive step forward for the region in meeting its country’s national air quality standards ,” the statement said.
The Monkey Island LNG export project is currently scheduled to produce a total of 12 mtpa of chilled gas with shipments beginning in 2022.
LNG World News Staff