Listed in Hong Kong China Gas and commodity trader Vitol want to form a joint venture business to supply LNG to China, according to a stock exchange filing by China Gas on November 26 as reported by Natural Gas World.
Joint venture company
The planned joint venture company will be based in Singapore, with each partner owning 50% of the company. China Gas stated it will supply roughly 800,000 metric tonnes of LNG in 2023, and no less than 1 million metric tonnes per year from 2024 onwards. The joint venture company must attain an annual import volume of more than 5 million mt in five years.
“The joint venture business will actively seek competitive quality foreign LNG resources to supply the Chinese market,” China Gas said. “This includes, but is not limited to, long-term, short-term, and annual LNG purchase and sale contracts connected to important recognised indexes.”
China Gas stated that “subject to objective conditions,” the joint venture business may consider establishing LNG receiving terminals in China.
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Source: Natural Gas World