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Report: Exxon inks 20-year LNG supply deal with Zhejiang Energy

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Report: Exxon inks 20-year LNG supply deal with Zhejiang Energy

U.S. oil major Exxon Mobil Corp. signed a framework agreement to supply Zhejiang Provincial Energy Group Co. Ltd. with LNG for 20 years, Reuters reported Oct. 18.

Under the agreement, the Chinese company will receive 1 million tonnes of LNG per year from the oil major, Zhejiang Energy President Tong Yahui said to Reuters during the sidelines of the International Petroleum and Natural Gas Enterprise conference.

Deliveries will start in the early 2020s, Reuters reported, citing a statement from Exxon.

Peter Clarke, president of Exxon Mobil gas and power marketing, told Reuters that the LNG supplied to China would come from a combination of Exxon's global portfolio as it seeks to boost output from Papua New Guinea and Mozambique.