Sinopec, Exxon reach deal for Papua New Guinea gas

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.

The two sides are working on a final purchase agreement, a Sinopec senior vice president, Wang Zhigang, said in a statement. The company gave no financial terms.

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.

Exxon Mobil, based in Irving, Texas, 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. Its shares are traded in New York, London, Hong Kong and Shanghai.

In August, Sinopec rival PetroChina Ltd. reached a $41 billion deal to buy natural gas from Australia's Gorgon field.

Subscribe to The China Post and save 25%. Click here

SharePrintEmail

Write a Comment

Terms

Enter your comments - 3000 characters max

Type in image code

Submit

 Receive China Post promos
 Respond to this email