Global Times - PetroChina to buy $41 billion LNG from Exxon Mobil

PetroChina to buy $41 billion LNG from Exxon Mobil

Source: Global Times
[10:34 August 19 2009]
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PetroChina signed a liquified natural gas (LNG) import deal with Exxon Mobil Corp. valued at an estimated A$50 billion ($41.1 billion) over the next 20 years, Martin Ferguson, the Australian Minister for Resources and Energy said Tuesday.

He said the biggest ever trade deal between the two nations showed the potential of the two nation's natural resources ties despite recent tensions over the arrest of an Australian Rio Tinto employee.

According to the agreement, PetroChina will buy 2.25 million tons of LNG a year from Exxon Mobil's 25 percent share of the Gorgon LNG project off the coast of northwestern Australia for 20 years.

In 2007, PetroChina signed an agreement with Woodside to buy 3 million tons of LNG every year from its share of the Browse LNG project which is also off the northwest coast of Australia. Last year, the Chinese oil giant signed binding sales and purchase agreements with Qatargas and Shell to buy 3 million tons of LNG per year from the Qatargas 4 project in Qatar.

PetroChina plans to build LNG terminals in Dalian in Liaoning Province, Rudong in Jiangsu Province, Tangshan in Hebei Province and Shenzhen in Guangdong Province.