Delfin Midstream has signed a preliminary 15-year sales deal with China’s gas distributor China Gas Holdings, Reuters has reported.
According to Frederick Jones, Delfin founder and chief executive officer, the deal will see Delfin supply 3m tonnes a year of liquefied natural gas from 2021. Currently Delfin is developing a $8bn floating LNG plant to export US natural gas, and Chinese banks have been involved to provide financing in the project.
“It’s a very significant challenge to secure long-term buyers given the rise of spot market and oversupply,” said Jones.
“We’re open to either or both types of investment…banks for debt and some strategic investors who want LNG partially under their control. We’ve seen a lot of interest from Chinese banks to finance shipping,” he added.
Additionally, Delfin signed a memorandum of understanding with Chongqing Oil and Gas Exchange to help develop a trading platform to the connect domestic Chinese market with international markets.