Shanghai: Petrochina, the nation's top oil producer, and Exxon Mobil, have reached a preliminary agreement that will bring Petrochina an annual supply of 2 million tons of liquefied natural gas (LNG) from the Australian Gorgon project for the next 20 to 25 years, sources reported.
The agreement, which still needs approval from China's State Energy Administration, would be the second Gorgon LNG agreement for Petrochina.
Petrochina earlier inked a 20-year deal with Royal Dutch Shell for purchase of 2 million tons of LNG each year.
Exxon and Shell each hold 25% of Gorgon, which is operated by Chevron Corp, owner of the remaining 50%. Gorgon's output was recently increased to 15 million tons per year, expanding Exxon's share to 3.75 million tons from 2.5 million tons a year. [24/02/09]
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