Sinopec Signs 20-Year LNG Agreement with ExxonMobil

China Petroleum and Chemical Corporation (Sinopec) has announced a significant deal with ExxonMobil's subsidiary Esso Highlands Limited, securing a 20-year supply of liquefied natural gas (LNG) for Sinopec's terminal in Qingdao, Shandong Province. The agreement, signed by Unipec Asia Co., Ltd., a subsidiary of Sinopec, will see the terminal receive 2 million tonnes of LNG annually from Papua New Guinea's Esso Highlands' LNG project. Sinopec's terminal, with an initial capacity of 3 million tonnes per annum, is expected to be expanded to 5-6 million tonnes per year in the future.

Key Takeaways:

• Sinopec, one of Asia's largest oil refiners, has signed a 20-year LNG agreement with ExxonMobil's subsidiary Esso Highlands Limited.
• The agreement will see Unipec Asia Co., Ltd. receive 2 million tonnes of LNG annually from the Papua New Guinea LNG project.
• The LNG will be supplied to Sinopec's terminal in Qingdao, Shandong Province, with the capacity initially set at 3 million tonnes per annum.
• The terminal's capacity is expected to be expanded to 5-6 million tonnes per year in the future.
• Sinopec is listed on multiple stock exchanges, including Hong Kong, New York, London, and Shanghai.

Statistics:

• 2 million tonnes of LNG will be supplied annually to Sinopec's terminal for 20 years.
• The initial capacity of the terminal is 3 million tonnes per annum.
• The terminal is expected to be expanded to 5-6 million tonnes per year in the future.

Sources:

• Xinhua (via COMTEX), Dec 03, 2009
• Copyright 2009 XINHUA NEWS AGENCY
• Comtex News Network, Inc., Nov 27, 2009 (SmarTrend Alert)