ExxonMobil signs 20-year LNG agreement with Zhejiang Energy

ExxonMobil and Zhejiang Provincial Energy Group entered into a sale and purchase agreement for liquefied natural gas (LNG). Under the agreement, Zhejiang Energy is expected to receive 1 million metric tons per year of LNG over 20 years.

“ExxonMobil shares Zhejiang Energy’s vision in developing a major LNG gateway in the Ningbo-Zhoushan region,” said Peter Clarke, senior vice-president of LNG at ExxonMobil. “We look forward to continuing our support for Zhejiang Energy during the construction, commissioning, and operation of its Wenzhou LNG receiving terminal."

Sinopec and the Zhejiang Energy Group agreed in August 2018 to form a joint venture company to build the LNG import terminal at Wenzhou in the eastern province of Zhejiang. Capable of handling 3 million tpy, the first phase of the terminal is expected to be operational by yearend 2021.

The project includes four tanks able to store 200,000 cu m of LNG each, a berth to dock LNG tankers up to 266,000 cu m, and a 26-km pipeline.

Financial terms were not disclosed.