Australia's Woodside Petroleum said on Oct. 22 it has signed an agreement to work with China's privately owned ENN Group on potential business opportunities that could boost demand for Woodside's liquefied natural gas (LNG).
The agreement, disclosed in a statement by Woodside, comes as Australian companies scent opportunities to expand LNG sales to China after Beijing imposed a 10% tariff on U.S. LNG imports in a growing trade war between the world's two biggest economies.
Australia's Santos already has a similar tie-up with ENN, which is also its top shareholder.
"Woodside's aim is to grow our relationship with ENN Group, and we now plan to jointly investigate opportunities for cooperation in LNG marketing, trading and shipping," Rienhardt Matisons, Woodside's executive vice president marketing, trading and shipping, said in the statement.
ENN officials in Beijing were not immediately available to comment.
Woodside said the agreement was signed in the Chinese coastal city of Zhoushan, where ENN recently opened an LNG import terminal.
The two companies may also look at working together on oil and gas exploration and production, liquefaction and regasification projects and power generation, Woodside said in its statement.