Guangzhou Gas Group Signs Long-Term LNG Agreement with Mercuria Energy Trading

The recent 29th World Gas Conference held in Beijing saw the formalization of a significant agreement between Guangzhou Gas Group and Mercuria Energy Trading. Guangzhou Gas Group, a subsidiary of China’s Guangzhou Development Group, has entered into a long-term liquefied natural gas (LNG) sales and purchase agreement (SPA) with Mercuria Energy Trading, a subsidiary of the global energy and commodity group Mercuria Energy.

Under this agreement, Mercuria Energy Trading will supply LNG to Guangzhou Gas Group, enhancing the latter’s capacity to secure stable gas resources, optimize the local energy mix, and reduce carbon emissions. This deal is a crucial step towards strengthening energy cooperation between the two organizations and ensuring regional energy security. It also aligns with China’s dual-carbon goals and promotes cleaner energy cooperation in the Greater Bay Area.

Key officials from both companies, including Cai Ruixiong, Chairman of Guangzhou Development Group, and Steve Hill, Executive Vice President of Mercuria Gas and LNG, were present at the event to commemorate the agreement. This collaboration signifies Mercuria’s commitment to being a strategic LNG partner in China and the Asia-Pacific region, driving decarbonization through sustainable supply chain development and commercial collaboration.

As the demand for LNG in Asia continues to rise, with around 70% of the global LNG market demand projected to come from the continent, partnerships like the one between Guangzhou Gas Group and Mercuria Energy Trading are crucial for meeting this demand. Woodside’s recent long-term supply agreement with China Resources Gas International Limited further highlights the growing importance of LNG imports in Asia.