ENN Signs The Largest Long-term LNG Purchase Agreement

On March 29, ENN (stock code: 600803.SH) and ENN Energy (stock code: 02688.HK) announced that the two companies were respectively related to the Lake Charles LNG project under Energy Transfer LP (NYSE: ET). The subsidiary Energy Transfer LNG Export, LLC (hereinafter referred to as "ET LNG Export Company") signed an LNG purchase and sale agreement.

According to the agreement, ET LNG Export Company is expected to supply 1.8 million tons of LNG and 900,000 tons of LNG to ENN Energy and ENN Energy through the Lake Charles LNG project in an offshore delivery (FOB) manner as early as 2026 for a period of 20 years. , the purchase price is linked to the Henry Hub benchmark price.

The agreement will be fully effective once ET LNG Export has met the conditions precedent, including a final investment decision on the Lake Charles LNG project.

Zheng Hongtao, President of ENN Group and Vice Chairman of the Board of Directors of ENN Energy, said, "The signing of a long-term contract with Energy Transfer will further enrich ENN's LNG resource sources, expand resource supply channels, improve ENN's natural gas supply capacity, and meet the needs of rapid domestic natural gas growth. To meet market demand, provide customers with better resources and services, and help the country's low-carbon transformation of energy structure."

“We are very honored to have ENN as our customer. These two long-term LNG agreements are an important milestone in the progress of the Lake Charles LNG project towards a final investment decision. At present, the demand for long-term contracts for the Lake Charles LNG project is strong, and we are ready to do We are optimistic about a positive final investment decision." Tom Mason, president of ET LNG, said, "The Lake Charles LNG project is expected to be financed primarily through infrastructure funds and funding from strategic partners, with Lake Charles LNG retaining equity and liquefaction. the right to operate the facility.”

Energy Transfer is one of the largest and most diversified midstream energy companies in North America, with business in major oil and gas production areas in North America. Natural gas gas-liquid separation and transportation business. The company owns and operates energy infrastructure in 41 U.S. states, with a total oil and gas pipeline network of nearly 200,000 kilometers. About 30% of the U.S. oil and gas is transported through the company's pipeline network.

The Lake Charles LNG project will be built on an existing brownfield regasification facility and will utilize four existing LNG storage tanks, two deepwater berths and other LNG infrastructure. The project plans to build three production lines with an estimated annual liquefaction capacity of about 16.5 million tons, which can export natural gas to customers around the world by connecting the Henry Hub to the company's vast network of natural gas pipelines.

As one of the largest private energy companies in China, ENN is committed to becoming an intelligent ecological operator in the natural gas industry. As its subsidiary, ENN Energy operates more than 250 city gas projects across the country, and strives to explore a modern energy system with the pan-energy business as a breakthrough. By the end of 2021, a total of 150 universal energy projects have been completed and put into operation, and another 42 universal energy projects are under construction.

ENN's annual LNG distribution capacity exceeds 10 billion cubic meters, and it operates China's first large-scale private LNG receiving terminal, Zhoushan LNG Terminal. Its business covers the entire natural gas industry scene including distribution, trade, storage and transportation, production, and engineering. Relying on the best practices in the industry, ENN has built an intelligent operation platform for the natural gas industry, Haoqiwang, to accelerate the aggregation of natural gas industry needs, resources, reserves, and delivery ecology, innovate and develop digital and intelligent services, and promote the digital and intelligent upgrade of the natural gas industry. In 2021, ENN's total natural gas sales volume will be 37.2 billion cubic meters, accounting for about 10% of China's total natural gas consumption.