PERTH (miningweekly.com) – Australian energy major Origin Energy has signed a nonbinding heads of agreement with China’s ENN LNG Trading Company to supply 500 000 t/y of liquefied natural gas (LNG) for a period of five years.
Origin told shareholders this week that a binding agreement would likely be executed in the second half of the calendar year, with LNG deliveries earmarked to start in 2018 or 2019, after completion of ENN’s Zhoushan receiving terminal in China.
The LNG would be supplied from Origin’s portfolio interest and optimised third-party purchases where market conditions created an opportunity to lower overall cost of supply.