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Project Insights

Zhoushan terminal to help ENN cut gas costs

The terminal in Zhejiang province will give ENN Energy an edge in lowering gas procurement costs by allowing it to import cheap LNG from the international market The terminal in Zhejiang province will give ENN Energy an edge in lowering gas procurement costs by allowing it to import cheap LNG from the international market.
By Tang Tian 18 April 2019 Asia Pacific / LNG 0 34147
ENN city gas storage tanks. (ENN)

The key issue: ENN Energy Holdings, one of China’s largest city gas distributors, has increased its gas sales in the past two years thanks to industrial coal-to-gas switching policies, but the rising cost of gas procurement has weighed on margins.

Interfax analysis: ENN Energy, the Hong Kong-listed downstream subsidiary of ENN Group, will need to lean on its parent company’s LNG terminal in Zhoushan to help it cut gas procurement costs, which have spiralled in recent years.

The 3.0 mtpa terminal gives ENN Energy a major...