Total Partners with Shenergy Group to Jointly Market LNG in China
March 23 2021 - 3:32AM
Business Wire
Regulatory News:
TOTAL (Paris:FP) (LSE:TTA) (NYSE:TOT):
Total and Shenergy Group, the leading energy player in Shanghai,
have signed binding agreements for the supply of up to 1.4 million
tons per annum of Liquefied Natural Gas (LNG) from Total, as well
as the creation of a joint venture to expand LNG marketing in
China.
The joint venture (Total 49%, Shenergy Group 51%) will sell LNG,
supplied by Total, to customers in Shanghai and throughout the
neighboring Yangtze River Delta regions, one of the main LNG
markets in China. Additionally, Total will supply LNG to Shanghai
Gas, the natural gas subsidiary of Shenergy Group, for its
distribution business.
“This deal with Shenergy Group is a great opportunity to partner
with an experienced Gas & LNG player with strong ambitions, as
well as a unique entry point into the downstream LNG market in
China. This partnership is in line with our strategy to grow along
the entire gas value chain,” said Stéphane Michel, President
Gas, Renewables & Power at Total. “LNG is playing a key
role in meeting the growing demand for natural gas, especially in
China where we are pleased to contribute to the diversification of
the energy mix.”
“The Shenergy Group is very pleased to sign this partnership
agreement with Total, which secures a long-term, reliable supply of
LNG for the Yangtze River Delta. The Joint Venture with Total will
develop the LNG downstream market and support the objective of
Shenergy Group to improve the air quality and reduce emissions in
the region,” said Mr. Wang Zhehong, Vice President of Shenergy
Group and Chairman of Shanghai Gas.
The LNG supply to the JV and Shanghai gas distribution business
will be sourced from global LNG portfolio of Total through a
long-term LNG Sale and Purchase agreement ramping up to 1.4 million
tons per annum for a term of twenty years. It will be delivered to
Shenergy’s Chinese LNG terminals.
About Shenergy Group
Shenergy (Group) Co., Ltd., founded in 1987, is a Shanghai-based
state-owned company that is engaged in power generation, gas
industry, finance, cable industry, energy service and trade. Its
subsidiary Shanghai Gas integrates natural gas procurement,
pipeline network distribution and sales services, which supplied
9.8 billion cubic meters of natural gas and served 6.3 million
natural gas users in 2019.
Total, Second Largest Private Global LNG Player
Total is the world's second largest privately owned LNG player,
with a global portfolio of nearly 50 Mtpa by 2025 and a global
market share of around 10%. The Group benefits from strong and
diversified positions throughout the LNG value chain: gas
production and liquefaction, LNG transportation and trading, and
contribution to the development of the LNG industry for maritime
transport. Through its interests in liquefaction plants in Qatar,
Nigeria, Russia, Norway, Oman, Egypt, the United Arab Emirates, the
United States, Australia and Angola, the Group markets LNG on all
world markets.
About Total
Total is a broad energy company that produces and markets fuels,
natural gas and electricity. Our 100,000 employees are committed to
better energy that is more affordable, more reliable, cleaner and
accessible to as many people as possible. Active in more than 130
countries, our ambition is to become the responsible energy
major.
Cautionary Note
This press release, from which no legal consequences may be
drawn, is for information purposes only. The entities in which
TOTAL SE directly or indirectly owns investments are separate legal
entities. TOTAL SE has no liability for their acts or omissions. In
this document, the terms “Total”, “Total Group” and Group are
sometimes used for convenience. Likewise, the words “we”, “us” and
“our” may also be used to refer to subsidiaries in general or to
those who work for them. This document may contain forward-looking
information and statements that are based on a number of economic
data and assumptions made in a given economic, competitive and
regulatory environment. They may prove to be inaccurate in the
future and are subject to a number of risk factors. Neither TOTAL
SE nor any of its subsidiaries assumes any obligation to update
publicly any forward-looking information or statement, objectives
or trends contained in this document whether as a result of new
information, future events or otherwise.
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