ExxonMobil Signs 20-Year LNG Agreement With Zhejiang Energy
ExxonMobil signed a sales and purchase agreement with Zhejiang Provincial Energy Group for LNG supply. Zhejiang Energy is expected to receive 1 mtpa over 20 years.
“This sales and purchase agreement represents an important milestone and provides a solid foundation for our strategic partnership with Zhejiang Provincial Energy Group,” said Peter Clarke, senior vice president of LNG at ExxonMobil.
“ExxonMobil shares Zhejiang Energy’s vision in developing a major LNG gateway in the Ningbo-Zhoushan region,” Peter Clarke, ExxonMobil’s senior vice president of LNG, said. “We look forward to continuing our support for Zhejiang Energy during the construction, commissioning and operation of its Wenzhou LNG receiving terminal."
During the signing of the framework agreement in October 2018, ExxonMobil said the deliveries will begin in the early 2020s. The LNG supplies to China would come from a combination of ExxonMobil’s global portfolio as the company boosts output from Papua New Guinea and Mozambique, according to Reuters.
Sinopec and the Zhejiang Energy Group in August 2018 agreed to establish a joint venture company to build an LNG import terminal at Wenzhou in the eastern province of Zhejiang. The facility will have the capacity to handle 3 mtpa of LNG and is set for commissioning toward the end of 2021.
Zhejiang Energy, the province’s largest power producer, will hold a 51% stake in the new entity, Zhejiang Zheneng Wenzhou LNG; Sinopec will hold 41%; and a local investment firm, 8%.
Shenzhen Gas Set to Open New LNG Terminal
The launch will make Shenzhen Gas the second Chinese city gas distributor backed by a local government to own an LNG import facility, following Shenergy Group’s Shanghai import terminal. Eni is set to deliver an initial cargo to the facility.
Australia Set To Become King of LNG Exports
Exports capacity has been rising for a decade and is on track to become the world leader within a year.
Kosmos on Track for Mauritania, Senegal Deal
The E&P company said that a reduction in its interests for projects off the coast of the West African nations should still happen by the end of this year. This includes the large Greater Tortue Ahmeyim LNG project, which is set to start up in 2022.
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