Zhenhua Oil Corporation, a unit of China North Industries Group Corp, a defense conglomerate, has reportedly set up a liquefied natural gas unit.
Sources told Reuters that the company has established a team of five employees led by its head of crude oil trading, Yu Fengwei. The team would size up investment in LNG terminals and carry out trading activities of the chilled fuel.
It is said that the team will focus on the spot LNG market, and aims to secure liquefied natural gas supply deals with its partners in the oil industry or negotiate oil for LNG swap deals.
The LNG unit would also focus on investing in liquefied natural gas facilities in the domestic market.
The company is looking to grab a stake in the growing domestic LNG market following the government’s decision to boost the switch from coal to natural gas, and is aiming to establish partnerships with other state-owned companies like the pipeline operators.
LNG World News Staff