5 Nov 2009

China lines up for PNG liquefied gas from Exxon Mobil project

4:51 pm on 5 November 2009

China's state-owned Sinopec Corp says it has reached a preliminary agreement with Exxon Mobil Corporation to buy 1.81 million tonnes of liquefied natural gas annually from a project under development in Papua New Guinea.

The deal comes amid a flurry of agreements by Chinese state-owned energy companies to secure foreign oil and gas supplies for the country's booming economy.

Sinopec, also known as China Petroleum & Chemical Corporation, says it would build a terminal in the eastern Chinese port of Qingdao to receive the gas.

Exxon Mobil is developing gas fields in Papua New Guinea's central highlands and a pipeline to carry supplies to the coast.