US oil and gas multinational ExxonMobil has signed a sales and purchase agreement with Chinese state-owned Zhejiang Energy for the supply of liquefied natural gas (LNG).
Zhejiang Energy is expected to receive one million metric tonnes per annum of LNG over 20 years. ExxonMobil plans to begin delivering the LNG in the early 2020s, using supplies from its global portfolio.
Go deeper with GlobalData
This contract is part of ExxonMobil’s recent efforts to strengthen its LNG portfolio, with the company recently investing in LNG projects in Papua New Guinea and Qatar.
The agreement is also expected to support Zhejiang Energy in its developments in the Ningbo-Zhoushan port area, including the building of a $1.34bn LNG terminal in the city of Wenzhou in Zhejiang province.
It is partnering with Sinopec in the development of the terminal, which will have an annual handling capacity of three million tonnes of LNG.
ExxonMobil senior vice-president for LNG Peter Clarke said: “This sales and purchase agreement represents an important milestone and provides a solid foundation for our strategic partnership with Zhejiang Provincial Energy Group.
“ExxonMobil shares Zhejiang Energy’s vision in developing a major LNG gateway in the Ningbo-Zhoushan region.
“We look forward to continuing our support for Zhejiang Energy during the construction, commissioning and operation of its Wenzhou LNG receiving terminal.”
