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Under the deal, Vitol will purchase 500,000 metric tons of LNG from China Gas Hongda Energy Trading’s contracted US volume on a FOB (free on board) basis and sell 500,000 metric tons of LNG to China Gas on a DES (delivered ex ship) basis, according to a statement by Vitol.
The deal starts in 2029.
Vitol did not provide further information.
In 2021, China Gas said it plans to form a joint venture with Vitol to supply LNG to China.
After that, China Gas signed a deal to buy LNG from Energy Transfer’s proposed Lake Charles LNG export facility in Louisiana and a deal with NextDecade for its under-construction Rio Grande LNG facility in Texas.
Last year, China Gas also penned two long-term deals to buy LNG from US LNG export Venture Global LNG.
The deals include Venture Global’s under-construction Plaquemines LNG and the planned CP2 LNG export facility, both in Louisiana.
On the other hand, trader Vitol entered the LNG market in 2006.
Vitol boosted its LNG volumes in 2023 to about 17.3 million tonnes of LNG on the back of higher demand in Europe.
The firm reported LNG volumes of about 14 million tonnes in 2022, 12.9 million tonnes in 2021, 10 million tonnes in 2020, and 10.5 million tonnes in 2019.
Pablo Galante Escobar, head of LNG, EMEA gas and power of Vitol welcomed this swap arrangement with China Gas, a “highly respected company and an important participant in China’s gas market.”
“Vitol’s LNG trading and freight management capability, combined with our global footprint, will help China Gas optimize their LNG portfolio,” he said.
Liu Ming Hui, chairman of China Gas said the swap deal with Vitol “diversifies our LNG portfolio, strengthens downstream supply, and enhances efficiency across the value chain.”
“We are confident that with Vitol’s sustainable support, our two companies will explore even more comprehensive collaborations in the future,” he said.
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The post Vitol enters long-term LNG swap deal with China Gas appeared first on Energy News Beat.
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