The agreement outlines the supply of LNG to the manufacturer for a duration of 10 years beginning from October 1, 2018 to September 30, 2028 at a price of RMB3.30/Nm3 (according to the agreement, an increase of LNG prices from the upstream supplier will warrant a price adjustment).
The brick manufacturer is estimated to consume 1,270,000 Nm3 of natural gas per annum.
Sanya Changfeng Clean Energy has also entered into an LNG supply agreement with a rubber manufacturer in Wenchang City, Hainan, PRC.
The agreement outlines the supply of LNG to the manufacturer for a duration of 10 years beginning from August 8, 2018 to August 7, 2028 at a price of RMB3.20/Nm3 (according to the agreement, an increase of LNG prices from the upstream supplier will warrant a price adjustment).
The rubber manufacturer is expected to consume 500,000 Nm3 of LNG per annum.
With the government’s policy to turn Hainan island into a free trade port and a role model to low carbon economy, the Company is hoping the development will increase the opportunity for natural gas consumption.
Source: Company Press Release
