October 18, 2018 / 3:09 AM / a month ago

Exxon Mobil signs framework agreement on LNG supply with Zhejiang Energy

FILE PHOTO: A logo of the Exxon Mobil Corp is seen at the Rio Oil and Gas Expo and Conference in Rio de Janeiro, Brazil September 24, 2018. REUTERS/Sergio Moraes

ZHOUSHAN, China (Reuters) - Exxon Mobil Corp (XOM.N) has signed a framework agreement to supply liquefied natural gas to Zhejiang Provincial Energy Group, a senior executive said on Thursday, marking Zhejiang Energy’s first long-term supply deal. The company said in a statement the deal is for 20 years.

Peter Clarke, president of Exxon Mobil gas and power marketing, was speaking at the International Petroleum and Natural Gas Enterprise conference at Zhoushan, near Shanghai.

Exxon Mobil is stepping up its efforts to meet soaring LNG demand, coupling multi-billion dollar production projects around the world with its first mainland storage and distribution outlet.

LNG supplies to China would come from a combination of Exxon Mobil’s global portfolios - not necessarily from the United States - as the company boosts output from Papua New Guinea and Mozambique, Clarke said later on the sidelines of the meeting.

State-owned Zhejiang Energy is a coal producer and utilities operator, and formed a joint venture earlier this year with commodities trader Glencore to trade energy products including LNG.

Reporting by Meng Meng and Dominique Patton; editing by Richard Pullin

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