EXXON Mobil Corp. said it has signed a 20-year agreement to supply liquefied natural gas (LNG) to China’s Zhejiang Energy, as the U.S. oil and gas giant steps up marketing of the fuel in China, the world’s second-largest buyer. Under the sales and purchase agreement, Exxon Mobil will supply 1 million tons a year of the super-chilled fuel to Zhejiang Energy, Exxon said in a statement late 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. Exxon Mobil 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 U.S. 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 (US$1.34 billion) receiving terminal for the fuel in Wenzhou, Zhejiang Province, with annual handling capacity of 3 million tons. Chinese State oil and gas major Sinopec will be a partner in the terminal. Exxon already has two long-term LNG supply agreements in China, one each with Sinopec and CNPC.(SD-Agencies) |