Securities code: Enn Natural Gas Co.Ltd(600803) securities abbreviation: Enn Natural Gas Co.Ltd(600803) Announcement No.: pro 2022024 Enn Natural Gas Co.Ltd(600803)
Announcement on signing major contracts for daily operation
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Important content tips:
● contract type: LNG purchase contract
● contract performance period: the contract will be implemented and delivered when the seller’s project is put into operation. The contract period is 20 years, and it is expected to start as early as 2026.
● preconditions for the effectiveness of the contract: the agreement will come into full force after the seller meets the preconditions, including the seller having relevant export licenses, making final investment decisions for the project, etc.
● impact on the company’s current performance: the signing of this contract will not affect the company’s performance this year. The performance of this contract will help the company optimize the resource pool structure, broaden the resource supply channels and further improve the natural gas supply capacity.
● risk tips:
1. The agreement will come into full force after the seller meets the preconditions, including the seller’s having relevant export licenses and making final investment decisions for the project. Due to factors such as fluctuations in international oil and gas prices and changes in industrial policies, there is uncertainty about whether the seller can reach the preconditions for the agreement to come into force.
2. During the performance of the contract, in case of the influence of force majeure, the contract may not be performed on schedule or in full, and the actual performance of the contract is uncertain.
“Singapore LNG Ltd” (hereinafter referred to as “Singapore LNG Company”) and Singapore LNG Company Limited (hereinafter referred to as “Singapore LNG Company”) signed the contract on June 2024. According to the Listing Rules of Shanghai Stock Exchange and the articles of association of the company, the LNG purchase contract signed this time does not need to be reviewed by the board of directors and the general meeting of shareholders.
1、 The subject matter of the contract and the situation of the other party
(I) subject matter of the contract
ENN Singapore purchases 1.5 million tons of LNG from rglng every year for 20 years. It is expected that the purchase price will be linked to the benchmark price of Henry hub as early as 2026.
(II) information of the other party to the contract
1. RG LNG Company is a subsidiary of nextdecade Corporation (NDX: next, hereinafter referred to as “nextdecade”). Nextdecade is a clean energy company striving to accelerate the realization of a net zero carbon emission future. It is committed to providing the world with cleaner energy and leading the innovation of green LNG and carbon capture solutions. Nextdecad, through its wholly-owned subsidiaries RG LNG and next carbon solutions, develops a 27 million ton LNG Export facility in southern Texas and one of the largest carbon capture and storage projects in North America. At the same time, nextdecade also actively carries out cooperation with third-party customers all over the world, using its unique process flow to reduce the cost of carbon capture and storage and reduce the carbon dioxide emission of customers’ industrial scale facilities.
2. RG LNG Export Company has no transactions with the company and its holding subsidiaries in the past three years.
3. RG LNG Export Company has no relationship with the company and its holding subsidiaries.
2、 Main terms of the contract
1. Starting time: it is expected to start from 2026 at the earliest, and the contract term is 20 years;
2. Contract volume: 1.5 million tons / year;
3. Delivery method: FOB delivery (delivery on board the ship at the loading port);
4. Purchase price: the purchase price is linked to the benchmark price of Henry hub;
5. Credit support: (1) the buyer shall provide parent company guarantee according to the contract; (2) At any time, if the parent company guarantor cannot maintain the rating requirements specified in the contract, the buyer shall provide additional guarantee;
6. Preconditions of the contract: including 1) the seller makes the final investment decision of the project; 2) The seller obtains the necessary approval and other preconditions such as the export license of the U.S. government. If the seller fails to complete the preconditions before December 31, 2022 and the contract is extended without the written consent of both parties, either party may choose to terminate the contract.
3、 Impact on Listed Companies
The signing of this contract will not affect the performance of the company this year. The performance of this contract will help the company optimize the resource pool structure, broaden the resource supply channels and further improve the natural gas supply capacity.
4、 Risk tips
1. The agreement will come into full force after the seller meets the preconditions, including the seller’s having relevant export licenses and making final investment decisions for the project. Due to factors such as fluctuations in international oil and gas prices and changes in industrial policies, there is uncertainty about whether the seller can reach the preconditions for the agreement to come into force.
2. During the performance of the contract, in case of the influence of force majeure, the contract may not be performed on schedule or in full, and the actual performance of the contract is uncertain.
The company will fulfill the obligation of information disclosure in time according to the progress. Please pay attention to the investment risks.
It is hereby announced.
Enn Natural Gas Co.Ltd(600803) board of directors
April 7, 2022
