(EnergyAsia, August 28, Friday) — Exxon Mobil Corporation and PetroChina Company Limited said their affiliates have signed a sales and purchase agreement for a 20-year supply of liquefied natural gas (LNG) from the proposed Gorgon LNG Project in Western Australia.
The contract for the supply of 2.25 million tonnes per year of the ExxonMobil affiliate’s share of LNG from the Gorgon project from 2012 is worth more than US$41 billion. The deal is the single largest trade agreement between the two countries.
ExxonMobil’s affiliate holds a 25% stake in the project, which include three five-million t/y LNG processing trains.
The companies earlier signed the agreement at PetroChina’s headquarters in Beijing in the presence of Exxon Mobil Corp’s senior vice president Andrew Swiger and PetroChina chairman Jiang Jiemin.
Mr. Swiger said: “ExxonMobil is very pleased to have been given the opportunity to develop this contract with PetroChina and hope that its successful conclusion will enhance the long term strategic relationship between our two companies.”
Luke Musgrave, vice president for Australia LNG, said: “I am delighted we have signed this long term LNG supply contract with PetroChina’s affiliate. Natural gas from our share of the Gorgon LNG project will provide a reliable source of clean energy to help meet China’s growing demand.”
Earlier this month, ExxonMobil signed a contract worth A$10 billion to supply LNG from Gorgon to India’s Petronet, making it Australia’s first LNG contract with India. (US$1=A$1.2).
The Gorgon project is operated by US major Chevron Corp which holds a 50% share in the joint venture, with the Australian subsidiaries of ExxonMobil and Royal Dutch Shell each holding a 25% stake. The partners are expected to make a final investment decision later this year on developing the Greater Gorgon gas fields located between 130km and 200km off the north-west coast of Western Australia. The fields contain an estimated 40 trillion cubic feet of natural gas, making them the largest known gas deposit in the country.