KFDA - NewsChannel 10 / Amarillo, TX: newschannel10.comSinopec, Exxon reach deal for Papua New Guinea gas
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Associated Press - November 5, 2009 8:35 AM ET
BEIJING (AP) - State-owned Sinopec Corp. today announced a preliminary agreement with Exxon Mobil to buy 2 million tons of liquefied natural gas annually.
The gas is expected to come 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 Corp., said it would build a terminal in the eastern Chinese port of Qingdao to receive the gas.
Irving, Texas,-based Exxon Mobil is developing gas fields in Papua New Guinea's central highlands and a pipeline to carry supplies to the coast of the South Pacific island nation.
Sinopec is Asia's biggest oil refiner by volume.
Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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