Big Oil Woos China With $24B Spree

LNG Deal

While Rongsheng is preparing to start its refinery, ENN Energy Holdings Ltd. has begun operations at a liquefied natural gas receiving terminal in Zhoushan. The project will be able to handle 3 million metric tons a year in its first phase, with annual capacity to increase to 5 million tons by 2021.

Exxon Mobil signed a preliminary deal to supply 1 million metric tons of LNG to Zhejiang Provincial Energy Group for 20 years beginning in the early 2020s. BP was said to be in the process of forming an oil-trading venture with Wuchan Zhongda Group, which is controlled by the local government, while a collaboration between Zhejiang Petroleum Co. and Glencore is planning to trade 10 million tons of oil a year.

“Unlike other conferences that tend to be forums for discussing regional or global market trends, this one is more narrowly focused on the Zhejiang market, which is where there are new opportunities,” Michal Meidan, an analyst at industry consultant Energy Aspects Ltd., said during the IPEC event.

With assistance from Hannah Dormido.To contact Bloomberg News staff for this story: Alfred Cang in Singapore at acang@bloomberg.net; Sarah Chen in Beijing at schen514@bloomberg.net. To contact the editors responsible for this story: Pratish Narayanan at pnarayanan9@bloomberg.net Heesu Lee.