Total and Shanghai’s Shenergy Group have created a joint venture to expand LNG marketing in China.
The joint venture, which is 49 percent owned by Total and 51 percent owned by Shenergy Group, will supply up to 1.4 million tons per year of LNG to customers in Shanghai and the neighboring Yangtze River Delta regions, over a period of 20 years.
In addition, Total will supply LNG to Shanghai Gas, the natural gas subsidiary of Shenergy Group, for its distribution business. LNG will be sourced from a long-term LNG sale and purchase agreement, and it will be delivered to Shenergy’s Chinese LNG terminals.
“This deal with Shenergy Group is a great opportunity to partner with an experienced gas and LNG player with strong ambitions, as well as a unique entry point into the downstream LNG market in China,” said Stephane Michel, president of gas, renewables and power at Total. “LNG is playing a key role in meeting the growing demand for natural gas, especially in