Exxon Mobil signs framework agreement on LNG supply with Zhejiang Energy

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Exxon Mobil signs framework agreement on LNG supply with Zhejiang Energy

8:10 CAT | 18 Oct 2018

Photo: Reuters / Sergio Moraes

Exxon Mobil Corp has signed a framework agreement on a 15-year liquefied natural gas (LNG) supply deal with Zhejiang Provincial Energy Group, a senior executive said on Thursday, marking Zhejiang Energy’s first long-term supply deal.

Peter Clarke, president of Exxon Mobil gas and power marketing, was speaking at the International Petroleum and Natural Gas Enterprise conference at Zhoushan, near Shanghai.

Exxon Mobil is stepping up its efforts to meet soaring LNG demand, coupling multi-billion dollar production projects around the world with its first mainland storage and distribution outlet.

LNG supplies to China would come from a combination of Exxon Mobil’s global portfolios – not necessarily from the United States – as the company boosts output from Papua New Guinea and Mozambique, Clarke said later on the sidelines of the meeting.

State-owned Zhejiang Energy is a coal producer and utilities operator, and formed a joint venture earlier this year with commodities trader Glencore to trade energy products including LNG.

Source: Reuters