Changfeng Energy, an energy provider in China, through its unit Sanya Changfeng Clean Energy, signed two LNG supply agreements with companies in China’s Hainan province.
The company said the deal it has signed with a brick manufacturer in Wenchang City marks its first step into business outside of Sanya City on Hainan island.
The agreement outlines the supply of LNG to the manufacturer for a duration of 10 years beginning from October 1, 2018, to September 30, 2028, at a price of RMB3.30/Nm3 ($0.48/Nm3).
Under the agreement, an increase of LNG prices from the upstream supplier will warrant a price adjustment.
The brick manufacturer is estimated to consume 1,270,000 Nm3 of natural gas per annum, Changfeng Energy said in a statement.
Sanya Changfeng Clean Energy has also entered into an LNG supply agreement with a rubber manufacturer in Wenchang City, for the same term starting August 8, and lasting for 10 years.
The deal RMB3.20/Nm3 ($0.46/Nm3), with the rubber manufacturer expected to consume 500,000 Nm3 of LNG per annum.