Glencore seals long-term LNG supply deal with China’s Shenzhen Energy

China’s power generation firm Shenzhen Energy has signed a long-term deal to buy liquefied natural gas (LNG) from a unit of Switzerland-based energy trader Glencore.

Shenzhen Energy’s unit SE Gas Holding signed the purchase and supply deal with Glencore Singapore on July 2, according to a statement by Shenzhen Energy issued on Monday.

The Chinese company did not reveal any details regarding the LNG supply deal.

Back in November 2022, Shenzhen Energy also signed a long-term deal to buy LNG from UK-based energy giant BP.

This SPA is the first long-term contract between the two firms and also Shenzhen Energy’s first long-term international LNG purchase agreement, according to Shenzhen Energy.

Prior to that, BP and the power firm were already cooperating via the Guangdong Dapeng LNG terminal in Shenzhen.

Shenzhen Energy said at the time it is promoting the construction of new gas-fired power plants to meet the demand of the Guangdong province and Shenzhen city.

The company said it expects its natural gas demand to rise “significantly” once these gas-fired power plants come online in 2024.

According to Shenzhen Energy’s website, the company’s gas unit has stakes in three LNG terminals.

GIIGNL’s data shows that Shenzhen Energy has a 30 percent stake in the Diefu LNG import terminal in Shenzhen, operated by PipeChina.

Glencore’s annual reports also show that the trader has previously invested in Shenzhen Energy Gas Investment Holding.

The company had a 7.8 percent stake in Shenzhen Energy’s unit in 2023, Glencore’s 2023 annual report shows.

LNG Prime invited Glencore to comment on the new LNG supply deal.

A spokesperson for Glencore declined to comment.

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