As part of the joint venture plans, Total will also supply LNG to Shanghai Gas, the natural gas subsidiary of Shenergy Group, for its distribution business.
It will be delivered to Shenergy’s Chinese LNG terminals
Stéphane Michel, President Gas, Renewables & Power at Total said:
- This deal 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
- 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
- Shenergy 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 JV with Total will develop the LNG downstream market and support the objective of Shenergy to improve the air quality and reduce emissions in the region
Total is the world's 2nd largest privately owned LNG player, with a global portfolio of nearly 50 Mtpa by 2025 and a global market share of around 10%.