CALGARY, Alberta (Reuters) - FortisBC has signed Canada's first long-term supply agreement to produce liquefied natural gas for export to China, the company said in a statement on Tuesday.
Under the two-year agreement with China's Top Speed Energy Corp, 53,000 tonnes of LNG will be shipped from the Tilbury facility in British Columbia to China by summer 2021, said Douglas Stout, vice president of market development and external relations for privately-owned FortisBC.
The agreement is the first of its kind to secure regular deliveries to China, said Stout.
"There is strong demand for Canadian LNG in China and this is an exciting time to be working in the industry here in B.C," he added.
Since 2017 FortisBC has been supplying LNG to customers for export to China on a spot basis.
Top Speed Energy Chief Executive Officer Chen Jianrong said his company was pleased to be working with FortisBC to move Canadian exports to China.
The contract was also welcomed by the Canadian government, which has been keen to see a Canadian LNG export industry develop in British Columbia.
"The announcement of an LNG contract at Tilbury is an encouraging step for Canada's LNG export industry," said Amarjeet Sohi, Canada's Minister of Natural Resources in a statement.
(Reporting by Nia Williams; Editing by Tom Brown)
This story has not been edited by Firstpost staff and is generated by auto-feed.
The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
Updated Date: Jul 17, 2019 00:06:37 IST