Chevron deal may boost spot market

Chevron Corp’s liquefied natural gas supply deal with China’s ENN LNG Trading Co may boost the formation of a spot market for the fuel in Asia. Chevron signed a 10-year supply deal with ENN to supply up to 650,000 metric tons per annum of LNG, with first delivery expected in 2018 or in the first half of 2019, Chevron said in a statement onMonday. ENN is a subsidiary of ENN EnergyHolding, which is one of China’s largest gas distribution companies and operates in 150 Chinese cities. The firm is also constructing a LNG import terminal in city of Zhoushan that is planned to start by 2018. Chevron expects to supply ENN through its existing LNG assets, “including the company’s Australian LNG interests at Gorgon, Wheatstone and theNorthWest Shelf”, the statement said.