Mining & Energy
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Swiss giant Vitol Inc. is launching an energy trading venture with ENH, the national oil company of Mozambique, where a plethora of natural gas reserves has opened the region to mega export projects. [File photo: vitol.com ]
Vitol and ENH, the National Oil Company of Mozambique, announced the launch of ENH Energy Trading, a joint venture commodity trading company. ENH Energy Trading will initially be owned 51% by ENH and 49% by Vitol. It is anticipated ENH’s share will increase over time.
ENH Energy Trading will focus on energy commodities, in particular LNG, LPG and condensate, enabling ENH to create additional value and develop expertise in trading energy commodities. Mozambique has an estimated 125 TCF of technically recoverable gas resources. In addition to using these resources to fuel domestic energy demand, the first phase of developments will produce significant quantities of gas, LPG and condensate, plus over 30 million tonnes of LNG annually, making Mozambique a leading exporter of LNG.
As part of the agreement, Vitol and ENH are committed to developing an independent and leading marketing and trading team for ENH Energy Trading, leveraging the parent companies’ knowledge and expertise.
The company will be incorporated and based in Singapore, to facilitate liaison with customers across the region, in which LNG demand is expected to grow significantly.
Dr. Omar Mithá, Chairman, ENH said: “Our expectation for this JV is to embark on a path into international commodity trading markets to support our growth. As the national oil company of Mozambique operating actively in the upstream, we are confidently expanding our operations overseas, and building a reputable asset for future generations.”
Russell Hardy, Vitol CEO said: “We are delighted to be forming this partnership and be part of Mozambique’s growth story. We very much look forward to replicating our previous experience of partnering with an NOC and working with ENH to build ENH Energy Trading into a successful trading company with the expertise to serve Mozambique’s energy needs.”
Vitol is an energy and commodities company; its primary business is the trading and distribution of energy products globally – it trades over seven million barrels per day of crude oil and products and, at any time, has 250 ships transporting its cargoes.
Vitol’s clients include national oil companies, multinationals, leading industrial and chemical companies and the world’s largest airlines. Founded in Rotterdam in 1966, today Vitol serves clients from some 40 offices worldwide and is invested in energy assets globally including: almost 16mm3 of storage across seven continents, 480kbpd of refining capacity and circa 6,500 service stations across Africa, Australia, Brazil, Eurasia and in Northwest Europe. Revenues in 2018 were $231 billion.
With over 7.8 million tonnes of LNG delivered in 2018 (expected to rise to at least 10 million tonnes in 2019) and an extensive global trading and logistics network developed over a decade of delivering to customers, Vitol is one of the largest and most experienced independent traders of LNG.
Its LNG portfolio comprises multiple medium and long-term contracts with customers from across all continents from Korea Midland Power (KOMIPO) to Angola LNG and Cheniere. These contracts are underpinned by contracts with relevant infrastructure, including shipping and regasification facilities.
ENH, Empresa Nacional de Hidrocarbonetos, is Mozambique’s state owned energy exploration and production company and represents the state of Mozambique in its investments across the industry.Source: Vitol / Press Release
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