Commodity trading company Vitol and ENH, the National Oil Company of Mozambique have launched a joint venture commodity trading company focusing on LNG.
ENH Energy Trading will initially be owned 51 percent by ENH and 49 percent by Vitol, with ENH’s share expected to increase over time, Vitol said in its statement.
ENH Energy Trading will focus on energy commodities, in particular, LNG, LPG and condensate, enabling ENH to create additional value and develop expertise in trading energy commodities.
Mozambique has an estimated 125 TCF of technically recoverable gas resources. In addition to using these resources to fuel domestic energy demand, the first phase of developments will produce significant quantities of gas, LPG and condensate, plus over 30 million tonnes of LNG annually.
As part of the agreement, Vitol and ENH are committed to developing an independent marketing and trading team for ENH Energy Trading, leveraging the parent companies’ knowledge and expertise.
The company will be incorporated and based in Singapore, to facilitate liaison with customers across the region, in which LNG demand is expected to grow significantly.