ExxonMobil Corp. has clinched a sales and purchase agreement to supply China’s Zhejiang Provincial Energy Group with 1 million metric tons/year of liquefied natural gas (LNG) for 20 years.

No details were provided about the source of the gas supply nor when the agreement would begin.

“This sales and purchase agreement represents an important milestone and provides a solid foundation for our strategic partnership with Zhejiang Provincial Energy Group,” said Exxon Mobil’s Peter Clarke, senior vice president of LNG.

“ExxonMobil shares Zhejiang Energy’s vision in developing a major LNG gateway in the Ningbo-Zhoushan region. We look forward to continuing our support for Zhejiang Energy during the construction, commissioning and operation of its Wenzhou LNG receiving terminal."
ExxonMobil noted that it has been “actively re-engaged” in China’s energy industry since the late 1970s.

Zhejiang Provincial Energy, established in 2001, is involved in power plant construction and power and heat production businesses in China, as well as natural gas and coal development and utilization. Headquartered in Hangzhou, the Group holds and manages 185 enterprises, including Zhejiang Zheneng Electric Power Co. Ltd. and Ningbo Marine Co. Ltd.

The Group said it controls and manages more than 30,000 MW of installed capacity, mainly coal-fired and gas-fired generation. In the field of natural gas, the Group said it provides 7,000 million cubic meters/year for power stations and urban gas companies, and it provides gas for more than 200,000 industrial and residential users.

ExxonMobil has its hand in numerous LNG export projects underway and under construction around the world. Golden Pass LNG, a joint venture with Qatar Petroleum in Sabine Pass, TX, was sanctioned in February and is expected to be operation by 2024. ExxonMobil and Eni SpA last year also sanctioned Coral South LNG in Mozambique.