Origin to supply LNG to China

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Image credit: Origin Energy Twitter account

Origin Energy has entered into an LNG Sale and Purchase Agreement (SPA) with ENN LNG Trading Company Limited (ENN) for the delivery of in China.

Image credit: Origin Energy Twitter account

The SPA, which follows a non-binding agreement heads of agreement between the two parties from earlier this year, will see Origin supply 280,000 tonnes of LNG per year for a period of five years.

Origin said the SPA also includes an option for a five-year extension, subject to mutual agreement.

“Deliveries of LNG under the SPA are expected to begin in calendar year 2018 or 2019 following completion of ENN’s Zhoushan receiving terminal in Zhejiang province, China,” the company told the ASX.

“Consistent with the head of agreement, the SPA provides Origin with the flexibility to supply from its portfolio.”