Australia’s Santos said it has entered discussions with ENN to establish an LNG trading joint venture in order to tap into the increasing LNG demand in the Chinese and international markets.
ENN, one of the largest natural gas distributors in China, holds a 10.31 percent share in Santos and already has a strategic relationship with the Australian LNG player, agreed in June last year.
Under the strategic relationship, the companies will focus on the joint investment in gas exploration and liquefied natural gas (LNG) production in Australia and Papua New Guinea.
The new joint venture between Santos and ENN aims to provide both companies increased access to LNG markets and provide Santos access to ENN’s Zhoushan import terminal in China which is expected to be commissioned in the second half of 2018. the facility will have a 3 mtpa import capacity.
A definitive JV agreement is expected in the second quarter of 2018, Santos said in a statement.