China's ENN Group Plans to Import 2 mt LNG Every Year

Chinese private sector entity ENN Group plans to import up to 2 million tons of LNG per year.

"ENN will nail certain LNG supply agreements by the end of this year with an expected capacity of up to 2 million metric tons annually as a start, and gradually increase the volume according to market conditions," Ma Shenyuan, vice-president of the group, told China Daily Wednesday.

ENN is the first Chinese private company authorized by the central government to build and operate an LNG import facility.

"Abundant supplies and lower international LNG prices have created a buyers' market, which favours our ongoing negotiations," Ma said.

Chinese LNG sector is controlled by state owned companies: Sinopec Group, PetroChina Co and CNOOC Ltd. Earlier this year, the government allowed ENN to build an LNG receiving terminal in Zhoushan, Zhejiang province. The move was seen as a big step toward the private sector's participation in the energy industry, China Daily said.

The private sector company currently buys gas and LNG mainly from the national oil companies.

"We distributed more than 10 billion cubic meters of gas in 2014. The company will continue supply cooperation with the big three oil and gas companies, even after the completion of the Zhoushan LNG receiving terminal," Ma said.