China’s Zhejiang Hangjiaxin Clean Energy announced in a social media post that it had inked a framework agreement to buy LNG from a subsidiary of Russia’s Novatek. Under the framework agreement, Novatek will deliver LNG to Saibu Gas’ Hibiki LNG import terminal in Kyushu, Japan. Hangjiaxin will then transport the LNG from Japan to its Jiaxing LNG terminal in Zhejiang, China, using small and medium-sized LNG vessels. Hangjiaxin, however, did not disclose details on volume, price and delivery periods of the deal.
This trade model is relatively new and creates new opportunities for using smaller LNG carriers to supply the Jiaxing LNG terminal, Hangjiaxin said. Market sources also said that the deal highlights the use of Japanese LNG infrastructure for break bulking to supply eastern China. Hangjiaxin is developing a 1 million tons/year Jiaxing LNG terminal which is scheduled to start up in the first quarter of 2022. The terminal can only be supplied by small-scale LNG ships and will operate to meet peak season gas demand.
