China's private energy company ENN Energy Holdings Ltd. is in negotiations with several LNG suppliers to secure more than 1 million mt/year of LNG over a five- to 10-year period starting from 2018, a senior company executive said Thursday.
"We are talking to many sellers and would like to select the best offer," ENN Vice President Ma Shenyuan said on the sidelines of the Gastech Conference, held in Singapore October 27-30.
ENN has been in discussions with several suppliers, including those with volumes from the US, he added. "I do believe [US LNG] will bring more diversity and competition to the industry." The volumes are to be delivered to ENN's 3 million mt/year terminal project in China's eastern Zhejiang region, which is due to commence operations in 2018.
"We would like the terminal to be open to third parties from day one," Ma said. "We will be the foundation user of the terminal, then [other parties] can book capacity."The terminal's capacity is expected to be expanded to 10 million mt/year, and accommodate both term and spot volumes, he said. But the timeline for the full expansion remains unclear.
ENN has received construction approval from Beijing for its regasification terminal in the first quarter of this year, with work initially scheduled for completion by end-2016.
ENN is also looking for additional spot cargoes for 2015 delivery to existing state-owned terminals.
"That will be based on agreements with the NOCs [national oil companies]," he said. "The terminals are not fully utilized," but the NOCs have a downstream market to protect, he explained.
A relative newcomer to the global LNG market, ENN has so far concluded one spot purchase of LNG, using existing infrastructure at PetroChina's Rudong LNG terminal in eastern China's Jiangsu province.
ENN received the cargo December 23, marking the first time a Chinese privately owned entity had imported LNG via third-party access at a state-owned terminal.
The seller of the cargo, Excelerate Energy, delivered 60,000 mt of LNG aboard the carrier Sonangol Benguela.
ENN secured another cargo at around $7.50/MMBtu from an unspecified seller for late July or early August delivery to Rudong, Platts previously reported. However, the buyer had to cancel the delivery, after PetroChina revoked the delivery slot.