Oct. 18 (UPI) -- ExxonMobil has signed an LNG supply agreement to deliver one million metric tons annually to the Zhejiang Provincial Energy Group Co. over a two-decade period starting in the early 2020s, ExxonMobil announced on Thursday.
The agreement with the Chinese-owned power generator was signed during the 2018 International Petroleum and Natural Gas Enterprises Conference held in Zhoushan, Zhejiang province, a company statement said.
"ExxonMobil is leveraging its nearly 50-year LNG expertise to help facilitate China's transition to a cleaner energy future where natural gas will play a critical role," Peter Clarke, president of ExxonMobil Gas and Power marketing, said in a press release.
Zhejiang Provincial is based in Hangzhou, capital of the province of Zhejiang, an eastern coastal province with a population of 54 million. It currently generates power from sources including coal and natural gas. Its subsidiary, the Zhejiang Electric Power Construction Co., participates in construction of nuclear, solar, thermal and hydroelectric plants.
ExxonMobil has been engaged in China's energy industry since the 1970s and has a long-term commitment to the country, the company said in its announcement of the deal.
The company said last month that it signed a framework agreement with the Guangdong provincial government to "advance discussions concerning the proposed construction" of a petrochemical industrial park. This "multibillion-dollar" project has an estimated 2023 start-up date.
ExxonMobil also said at the time it was progressing the Huizhou LNG receiving terminal. Huizhou is a city in the Guangdong province. The company is also a joint venture partner with Sinopec, the Fujian province and Saudi Aramco in China's first integrated refining and petrochemical facility to include international participation.
Both Guangdong and Fujian are in the southeast region of the country.