Fired heaters at the Gorgon LNG project. Image courtesy of Chevron.

Chevron said Tuesday it has signed an agreement with ENN LNG Trading Company Limited (ENN) to sell liquefied natural gas (LNG) to China.

Chevron’s wholly owned subsidiary, Chevron U.S.A. Inc., has signed a binding LNG sales and purchase agreement (SPA) with ENN for the delivery of LNG to China from Chevron’s global supply portfolio.

Under the terms of the SPA, ENN will receive up to 0.65 million metric tons per year of LNG over a 10 year period.

The first delivery is expected to start in 2018 or the first half of 2019, Chevron said.

ENN LNG Trading Company Limited is a subsidiary of ENN Energy Holding Ltd., one of the largest natural gas distribution companies in China.

ENN Energy Holdings operates in 150 cities across 17 provinces and autonomous regions, with over 12 million residential and 56,000 industrial and commercial customers.

ENN’s Zhoushan LNG receiving terminal is being constructed and expected to be online by 2018.

Chevron said the SPA delivery requirements are expected to be fulfilled by its growing LNG portfolio, including the company’s Australian LNG interests at Gorgon, Wheatstone and the North West Shelf.

“Chevron’s commitment to gas is clear. We’ve been in the natural gas business for more than 100 years, and we’re positioned to become one of the top LNG suppliers in the world,” Chevron Midstream and Development executive vice president Mike Wirth said.


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