ExxonMobil Pens 20-Year Deal to Sell LNG to Zhejiang
Xu Wei
DATE:  Apr 24 2019
/ SOURCE:  yicai
ExxonMobil Pens 20-Year Deal to Sell LNG to Zhejiang ExxonMobil Pens 20-Year Deal to Sell LNG to Zhejiang

(Yicai Global) April 24 -- ExxonMobil and Zhejiang Provincial Energy Group have penned an agreement for the American energy giant to send 1 million tons of liquefied natural gas to China's Zheijang province every year for the next two decades.

That equates to about 1.4 billion cubic meters after gasification, the annual gas consumption of the entire province, Zhejiang Online reported yesterday, without disclosing the financial terms of the deal.

LNG is gradually becoming the primary natural gas source in the eastern province, where state-backed Zhejiang Energy is currently building facilities to receive and store the fuel, said Fan Xiaoning, deputy general manager of the firm.

The company has already started construction of one in Wenzhou and plans to build two to three more in Ningbo and Zhoushan, with hopes of being able to receive over 40 million tons of LNG at these terminals once completed, he added.

The deal provides a solid foundation for a strategic partnership between the two companies, added Peter Clarke, senior vice president of LNG at ExxonMobil. The Irving-based firm looks forward to offering continued support to Zhejiang Energy during the construction, commissioning and operation of its Wenzhou terminal, he continued.

Zhejiang Energy will still be on the hunt for reliable, flexible and competitive LNG suppliers around the world to develop the local natural gas industry and secure long-term fuel resources for the province, the report added.

Editor: James Boynton

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Keywords:   Exxon Mobil,Zhejiang Energy,LNG