Chevron, China’s ENN seal second LNG SPA

ENN Natural Gas announced the new SPA in a statement on Wednesday.

Under the 10-year deal, Chevron will deliver “multiple” LNG cargoes annually to ENN, the Chinese firm said.

Moreover, Chevron will deliver the LNG supplies, indexed to oil prices, from its global portfolio.

The deliveries are scheduled to start in 2028.

In 2016, Chevron signed the first LNG SPA with ENN LNG Trading for the delivery of LNG to China from Chevron’s global supply portfolio.

Under the terms of this SPA, ENN receives up to 0.65 mtpa of LNG over a 10-year period.

ENN noted in the statement that this new SPA coincides with the official commissioning of the third phase of its Zhoushan LNG terminal.

This 10 mtpa LNG facility will significantly enhance natural gas import and peak-shaving capabilities along China’s eastern coastline, the company said.

Earlier this year, UAE’s Adnoc also signed a long-term SPA with ENN to supply the latter with LNG from its LNG terminal in Al Ruwais.

Under the deal, ENN will buy 1 mtpa of LNG for 15 years.

The LNG supplies will primarily be sourced from Adnoc’s LNG terminal under construction in Al Ruwais Industrial City, Abu Dhabi.

This long-term contract also adopts a pricing model linked to oil prices.