Recent reports revealed that Australia's Woodside Petroleum and China's ENN Group have recently agreed on a joint venture to sell liquefied natural gas. The two companies signed an agreement that could take advantage of the potential business opportunity in the liquefied natural gas business as well as boost its demand.
The recently signed agreement was shared by Woodside Petroleum in a time when Australian companies are sensing lucrative business opportunities in China, especially towards the liquefied natural gas. Woodside Petroleum confirmed that the agreement was signed in the Chinese city of Zhoushan. Incidentally, it is also the same city where ENN Gas recently open an import terminal for its liquefied natural gas business.
The agreement is a clear evidence to the growing trade tension between China and the United States. Recently, China imposed a 10 percent tariff on imported liquefied petroleum gas from the United States. The trade war between China and the United States have left many countries scrambling for alternative suppliers. The deal with Woodside Petroleum is not the first Australian venture of ENN. Santos, an Australian company, also has a similar tie-up with ENN Group, which happens to be its largest shareholder.
ENN Group also has agreements with other international companies. Chief among these are with France's Total, Australia's Origin, and Chevron.
In a statement released to the press, Woodside executive vice president for marketing, trading, and shipping Reinhardt Matisons said that the part of the company's vision is to improve its business relationship with ENN Group. Mr. Matisons added that the two companies are now looking for opportunities that will cover trading, marketing, and shipping of liquefied petroleum gas.
ENN Gas said that the joint venture with Woodside Petroleum can be described as an intent to cooperate. Moreover, the Chinese company is also exploring positive cooperate with its Australian counterpart in its effort to expand its current chain of partners dealing with liquefied natural gas products. With the launch of ENN Gas' Zhoushan terminal, many observers have reported that it will help boost the company's natural gas business. Moreover, the recent venture with Woodside Petroleum will further boost its business in Australia.
Aside from the core natural gas business, many believe that the Woodside and ENN venture will push to cover even more sector. Some market analysts believe that the venture will further push into gas and oil exploration, oil production, regasification, liquefaction, and power generation.
