BEIJING, Nov. 13 (Xinhua) -- CNOOC Gas and Power Group, China’s largest operator of liquefied natural gas (LNG) terminals, on Thursday signed a 5-year LNG terminal window trading deal with Senton Energy, a local energy firm in Shandong through the Shanghai Petroleum and Natural Gas Exchange (SHPGX).
The deal will take effect from January 1, 2021, with Senton Energy to unload four vessels of LNG through CNOOC’s LNG terminals every contract year.
The LNG resources will consist of long-term LNG provided by the CNOOC and spot LNG that can be purchased either by Senton Energy itself or by the CNOOC.
During the contract period, Senton Energy is able to pick up LNG at any one of CNOOC’s terminals that has spare capacities, which will greatly improve the flexibility of the deal.
This is the second time Senton Energy reached LNG terminal window trading deal with the CNOOC.
The SHPGX first introduced the trial transaction of such service in 2018, when Senton Energy and Zhenhua Oil jointly purchased about 100 million cubic meters of LNG and picked it up from the LNG terminals operated by the CNOOC. The new move marked a step forward for China’s efforts in promoting the fair access to its natural gas infrastructures. (Edited by Zhou Yuran, firstname.lastname@example.org)