China inks 20-year LNG deal with ExxonMobil

International

China inks 20-year LNG deal with ExxonMobil

Energy major ExxonMobil has signed a sales and purchase agreement with China’s Zhejiang Provincial Energy Group to supply 1 mta of LNG over 20 years for China’s eastern province of Zhejiang. No details were available on the timing or price.

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

ExxonMobil has invested in LNG production in the east Mediterranean, Papua New Guinea, Qatar and the US Gulf Coast. The LNG will not be supplied from US production and is separate from the China-US trade negotiations, according to a Nasdaq report.

ExxonMobil is a partner with Qatar Petroleum (QP) in the Golden Pass project in Sabine, Texas. Golden Pass was originally built as one of the world’s largest LNG import terminals with regasification capacity of 2Bn ft3 per day. ExxonMobil and QP plan to convert Golden Pass into a facility that can both export and import natural gas in response to market conditions. Golden Pass will have an estimated export capacity of 15.6 mta of LNG.

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

Zhejiang Energy Group has vast holdings in energy, controlling and managing installed capacity over 30,000 MW, mainly coal-fired and gas-fired power generation. It is currently working with China’s Sinopec on building an LNG import terminal in the port city of Wenzhou. The facility will have the capacity to handle 3 mta of LNG and is set for commissioning in 2022 or 2023. It is also expected to handle LNG imports from Australia Pacific LNG export terminal at Gladstone in Queensland, Australia.

https://www.lngworldshipping.com/news/view,china-inks-20year-lng-deal-with-exxonmobil_57587.htm

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