China Gas, Vitol to form LNG joint venture
Hong Kong-listed China Gas and commodity trader Vitol intend to establish a joint venture company for the supply of LNG to China, China Gas said on November 26 in a stock exchange filing.
The joint venture company is proposed to be established in Singapore with a 50% shareholding by each party. It will supply about 800,000 metric tons of LNG in 2023 and from 2024 onwards, the supply shall be no less than 1mn mt/year, China Gas said. In five years, the joint venture company shall achieve an import volume of over 5mn mt/yr.
“The joint venture company shall actively seek competitive quality international LNG resources to supply the Chinese market, including but not limited to, long-term, short-term and annual LNG purchase and sale contracts linked to relevant recognised indices,” China Gas said.
China Gas said that the joint venture company may also look to develop LNG receiving terminals in China “subject to objective conditions”.