Total and Shenergy Group have created a new joint venture to expand LNG marketing in China.
Unveiled today (23rd March), the joint venture will sell LNG supplied by Total to customers in Shanghai, as well as the neighbouring Yangtze River Delta regions.
As part of the joint venture plans, Total will also supply LNG to Shanghai Gas.
Stéphane Michel, President Gas, Renewables & Power at Total, commented, “This deal with Shenergy Group is a great opportunity to partner with an experienced Gas & LNG player with strong ambitions, as well as a unique entry point into the downstream LNG market in China.”
“LNG is playing a key role in meeting the growing demand for natural gas, especially in China where we are pleased to contribute to the diversification of the energy mix.”
Wang Zhehong, Vice-President of Shenergy Group and Chairman of Shanghai Gas, added, “The Shenergy Group is very pleased to sign this partnership agreement with Total, which secures a long-term, reliable supply of LNG for the Yangtze River Delta.”
“The joint venture with Total will develop the LNG downstream market and support the objective of Shenergy Group to improve the air quality and reduce emissions in the region,”
LNG supplied to the JV and Shanghai gas distribution business will be sourced from global LNG portfolio of Total through a long-term LNG Sale and Purchase agreement ramping up to 1.4 million tons per annum for a term of 20 years.