SK E&S Marching China Zhejiang LNG Market
According to sources, SK E&S and Beijing Gas Blue Sky Holdings (BGBS) signed a deal on July 3 to establish a Joint Venture to develop East China’s LNG and natural gas market. BGBS sold 30% stakes of three its natural gas and LNG trading arms in Zhejiang to SK E&S, and signed a 10-year contract to purchase LNG from SK E&S’s trading company in Zhoushan.
SK E&S is also allegedly in talking with a terminal in East China seeking LNG import windows slots, while the company endeavors to establish the downstream LNG distribution in the LNG direct-supply and LNG filling station business in Zhejiang Province. Together with the new trading arm taken-over from BGBS, the link between the terminal and downstream users has been fulfilled, and SK E&S is expected to embrace a great development in East China’s LNG market as an independent upstream supplier and downstream distributor, shored up by the pioneering natural gas midstream reform in Zhejiang Province.
