Total has signed a deal to supply of up to 1.4mn metric tons/year of LNG to China’s Shenergy Group, the French major said on March 23. The companies will also form a joint venture to expand LNG marketing in China.  

The LNG supply will be sourced from Total’s global LNG portfolio under a 20-year sales and purchase agreement. It will be delivered to Shenergy’s Chinese LNG terminals. 

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The joint venture, which will be 51%-owned by Shenergy and 49% by Total, will sell the LNG to customers in Shanghai and throughout the neighbouring Yangtze River Delta regions. Additionally, Total will supply LNG to Shanghai Gas, the natural gas subsidiary of Shenergy Group, for its distribution business.