Thursday November 5, 4:39 PM
China's Sinopec signs LNG deal with Exxon Mobil
China's Sinopec has signed a preliminary agreement with US energy giant Exxon Mobil to buy two million tonnes of liquefied natural gas (LNG) a year from a project in Papua New Guinea.
Asia's largest oil refiner would store the LNG in a receiving terminal in the eastern city of Qingdao, Sinopec said in a statement posted on its website Wednesday.
Sinopec, also known as China Petroleum and Chemical Corporation, and Exxon hoped to finalise a binding sale and purchase agreement by year's end, the statement said. The deal would be "long term", the firm said, without providing further financial details.
The deal is the latest by a Chinese petrochemicals company as the energy-hungry country tries to secure its access to natural resources.
In August, China's biggest oil and gas producer PetroChina ordered 2.25 million tonnes of LNG a year over 20 years from Exxon Mobil's share of Australia's Gorgon plant in a deal worth 41.3 billion dollars.
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