ExxonMobil Signs 20-year China LNG Supply Deal



ExxonMobil Signs 20-year China LNG Supply Deal
Zhejiang Energy and Sinopec are building an LNG import terminal at Wenzhou in eastern China.

China-based Zhejiang Provincial Energy Group has signed a liquefied natural gas (LNG) sales and purchase agreement with Exxon Mobil Corp.

According to a written statement Monday from ExxonMobil, Zhejiang Energy should receive 1 million metric tons per annum (mtpa) of LNG over a 20-year period.

“This sales and purchase agreement represents an important milestone and provides a solid foundation for our strategic partnership with Zhejiang Provincial Energy Group,” Peter Clarke, ExxonMobil’s LNG senior vice president, stated.

As an Aug. 22, 2018, Reuters article posted to Rigzone notes, Zhejiang Energy is partnering with Sinopec Corp. to build a 3-mtpa LNG receiving terminal at Wenzhou in China’s eastern Zhejiang province. The initial phase of the facility reportedly is targeted to begin operations in late 2021.

“ExxonMobil shares Zhejiang Energy’s vision in developing a major LNG gateway in the Ningbo-Zhoushan region,” said Clarke. “We look forward to continuing our support for Zhejiang Energy during the construction, commissioning and operation of its Wenzhou LNG receiving terminal.”



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