Glencore seals LNG supply deal with China’s Shandong Order Group

According to a statement by the Shandong Order Group, the medium-term LNG supply deal with Glencore Singapore was signed in Beijing on March 25.

Shandong Order Group did not provide any details regarding the LNG supply deal.

The Chinese firm said the signing of this contract is another important achievement of deepening cooperation between the two sides in the energy field.

Both sides will work together to promote the integrated development of the upstream, midstream, and downstream of the natural gas industry chain, it said.

According to a report by Platts, part of S&P Global Commodity Insights, the JKM-linked LNG contract involves the supply of three cargoes per year over a three-year period on an ex-ship (DES) basis.

Last year, Australian LNG player Santos agreed to supply Glencore Singapore under a new mid-term deal.

This contract is for up to 0.5 million tonnes of LNG per annum over a period of 3 years plus one quarter.

It will start in the fourth quarter of 2025 with LNG being supplied from Santos’ global portfolio of LNG assets on a delivered ex-ship basis.

Prior to this contract, China’s power generation firm Shenzhen Energy also signed a long-term deal to buy LNG from Glencore Singapore.

In addition, Glencore entered into a long-term agreement last year with Kimmeridge’s Commonwealth LNG to buy liquefied natural gas from the latter’s planned LNG export plant in Cameron, Louisiana.

Commonwealth LNG is targeting a final investment decision on its planned LNG export plant in Louisiana in September this year