Exxon Initials LNG Supply to China's Zhejiang

ExxonMobil issued a statement October 18 confirming its signature of a heads of agreement with Zhejiang Provincial Energy Group for LNG supply.

Once firmed up, the Chinese importer is expected to receive 1 million metric tons per annum of LNG over 20 years starting in the early 2020s from ExxonMobil.

The US supermajor said the deal was signed during the 2018 International Petroleum and Natural Gas Enterprises Conference held in Zhoushan, Zhejiang Province.

“This agreement represents an important milestone in our strategic partnership with Zhejiang Provincial Energy Group,” said Peter Clarke, president ExxonMobil Gas & Power Marketing Company. “ExxonMobil is leveraging its nearly 50-year LNG expertise to help facilitate China’s transition to a cleaner energy future where natural gas will play a critical role."

The supply is expected to come from ExxonMobil's portfolio of supplies, which by the mid-2020s will comprise not only Qatari and Papua New Guinean LNG, but also initial supplies from its Mamba (or Rovuma) LNG project - pending FID - onshore Mozambique in east Africa, as well as US and other sources.