Foran Continues Rapid Expansion in LNG Chains
November 24, 2020, Foran Energy inked the investment agreement with Guanghai Bay Energy Holdings to take over 19.9% stakes of the company as the third-largest shareholder. By so, Foran further spread its feelers in the upstream of LNG supply in the wake of the upcoming 3 Mtpa LNG receiving terminal planned by Guanghai Bay Energy. The new proposed terminal’s share structure became Jiangmen City Construction Investment Group by 50.1%, Jovo Energy by 30% and Foran Energy by 19.9%.
Foran Energy has executed aggressive strategies in 2020 in the LNG full-chain coverage, driven by the coal-to-gas switch which becomes mandatory in Guangdong Province and the promising prospect of Guangdong’s natural gas development for a leading franchised city gas company.
As for the LNG upstream, Foran Energy not only utilized its shares in CNOOC Dapeng terminal and CNOOC Zhuhai terminal to grab import slots for spot purchasing, but also performed actively in the international sourcing. In November 2020, Foran Energy inked an LNG Purchase and Sales HOA with Cheniere Energy to purchase 26 cargoes of U.S. LNG in the next five years, pricing based on NYME’s Henry Hub Index.
As for the LNG midstream, in April 2020, Foran Energy inked 2-year SPA with BP China to purchase the LNG in liquid or regas under BP China’s 30% share in CNOOC Dapeng terminal, which is expected to be around 300,000 metric tons per year. Also in April, Foran Energy invested the Xiaohu Island LNG peak-shaving storage project with Guangzhou Yuanheng Energy, Guangzhou Nansha Zhenrong Storage and Guangdong Xiaohu LNG. Later in July, Foran Energy won the bidding for 30% stakes of Guangdong Xiaohu Petrochemical Terminal Company, further strengthened its position in the Xiaohu Island project.
