ENN LNG, a subsidiary of Chinese gas major ENN Group, has issued a tender seeking liquefied natural gas (LNG) for ten years starting in 2022.
ENN LNG is looking for between 500,000 and 1 million tonnes of LNG a year, with prices benchmarked over Brent oil on a China-delivered basis, Reuters reports quoting a trading source with direct knowledge of the matter.
This makes it their largest long-term tender.
At this time, long-term LNG contracts are being negotiated at record low prices due to an increase in supply from new projects.
ENN owns and operates a major LNG receiving terminal located in Zhoushan in eastern China’s Zhejiang province, south of Shanghai. The terminal is able to handle five million tonnes of fuel a year, while the initial design was for receiving a capacity of 3 million tonnes a year.
The terminal was build by China Petroleum & Chemical Corporation (Sinopec).
Reuters also claims that ENN’s LNG handling volume is set to rise under China Oil and Gas Pipeline Network (PipeChina), established to broaden companies’ access to energy infrastructure previously controlled by state oil majors.