2.7 million tons per year! New Energy signs long-term LNG procurement agreement with U.S. company

Thread Content

2.7 million tons per year! SNOW Energy signs long-term LNG procurement agreement with U.S. company Author/Source: Sinochem New Network Date: 2022-04-02 Views: 104 On March 29, SNOW Energy Co., Ltd. and SNOW Energy announced that each of them had signed LNG purchase and sale agreements with Energy Transfer LNG Export, LLC (ET LNG Export), a subsidiary of Energy Transfer LP (NYSE:ET), related to the Charles Lake LNG project. Under the agreement, ET LNG Export Company is expected to supply 1.8 million tons of LNG per year to ENN Group and ENN Energy respectively, via the Charles Lake LNG project, on an FOB basis, starting as early as 2026, for a period of 20 years. The purchase price will be linked to the Henry Hub benchmark price. The agreement will become fully effective after ET LNG Export Company meets certain prerequisites, including making a final investment decision on the Lake Charles LNG project. Energy Transfer is one of the largest and most diversified midstream energy companies in North America, with operations spanning all the major oil and gas production areas in the region. Its core business activities include interstate and intrastate transportation and storage of natural gas, as well as the transport of crude oil and refined products, in addition to natural gas separation into gas and liquid forms and their transportation. The company owns and operates energy infrastructure in 41 states across the United States, with a total pipeline network length of nearly 200,000 kilometers; approximately 30% of the oil and gas in the country is transported through its pipelines. The Charles Lake LNG project will be built on existing brownfield regasification facilities, and will utilize the four existing LNG storage tanks, two deep-water berths, and other LNG infrastructure. The project plans to build 3 production lines, with an expected liquefaction capacity of around 16.5 million tons per year. By connecting to the Henry Hub and the company’s extensive gas pipeline network, it will be possible to export natural gas to customers around the world. New Energy Group’s annual LNG distribution capacity exceeds 10 billion cubic meters. It operates China’s first large-scale private LNG receiving station, the Zhoushan LNG Receiving Station, and its business covers all aspects of the natural gas industry, including distribution, trading, storage and transportation, production, and engineering. In 2021, ENN Energy’s total natural gas sales volume reached 37.2 billion cubic meters, accounting for approximately 10% of China’s total natural gas consumption.