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Exxon Mobil signed 20-year LNG supply agreement with Chinese refinery


Exxon Mobil Corp said it has signed a 20-year agreement to supply 1 million liquefied natural gas (LNG)  per year to China’s Zhejiang Energy, a provincial government-backed refinery, Exxon said in a statement late on Monday.

The agreement, which follows a framework deal announced last October, did not give details on price or timing, or say where the supplies will be sourced.

The oil giant said last year it would deliver the LNG starting in the early 2020s, while LNG supplies to China would come from its global portfolio.

The US firm has been expanding its portfolio of LNG, including from upcoming projects in Mozambique, Papua New Guinea, Qatar and Golden Pass in the United States.

Zhejiang Energy is building a 9 billion yuan receiving terminal for the fuel in Wenzhou, in the eastern province of Zhejiang, with annual handling capacity of 3 million tonnes.

Exxon already has two long-term LNG supply agreements in China, one each with Sinopec and CNPC, China’s largest state oil group, she said.