Exxon-China Natural Gas Deal

Greenwire reports:

PetroChina Co., a unit of China National Petroleum Corp., today signed a 20-year, $41 billion deal to buy gas from ExxonMobil Corp., Australian Energy and Resources Minister Martin Ferguson said.

Exxon will mine the gas from its 25 percent share of Australia’s Gorgon gas field, Ferguson said, moving the offshore project one step closure to fruition. Chevron Corp. and Royal Dutch Shell PLC own 50 percent and 25 percent stakes, respectively, in the field, which is believed to contain 40 trillion cubic feet of gas.

This is a good development from many perspectives — climate change (natural gas is lower carbon per unit of energy than coal), Chinese air pollution (it’s also less polluting than coal); California air pollution (stuff from China actually blows across the Pacific); and the U.S. economy (presumably at least some of the profits will end up back here).

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Reader Comments

One Reply to “Exxon-China Natural Gas Deal”

  1. From Gotlib Arie
    ORION Ltd
    mail : [email protected]
    mobile : ++972 544 953323
    Very Urgent – See the date of prequalification on October 20, 2009 at 14.00 israeli time

    To Exxon-China Natural Gas Deal

    Could you inform me if the tender below interests you and if not, could you advise names of LNG companies that might be inerested by this tender.

    In the PDF attached you can find all the requirements needed for the tender. Thank you in advance.

    I am an international intermediary agent and I work with the biggest infrastucture and marine works company in Israel.

    That company that has experience with BOT projects has already won several projects in Israel.

    I am looking for a company to collaborate with them in this LNG project.

    I would like to know if it might interest you.

    As an agent, I take 3% on the concluded amount of the tender

    I remain at your disposal for more information. I can come with the Vice President of the company if you wish for the time is very short for the prequalification.

    The State of Israel

    Tender Committee

    State of Israel

    INVITATION FOR PREQUALIFICATION

    For participation in a tender for a liquefied natural gas (LNG) project that shall include:

    (1) the design, financing and construction of an offshore LNG Receiving Terminal with a

    daily processing capacity of no less than 16 million cubic meters of standard Natural Gas

    (SNG) [annual processing capacity of approximately four billion cubic meters (4 BCM)

    of SNG] (the “LNG Receiving Terminal1”); and (2) the operation and maintenance of

    the LNG Receiving Terminal, including, inter alia, storage and regasification of the

    LNG;

    The LNG Receiving Terminal shall be executed through a build-operate-transfer (BOT)

    concession agreement, according to which a license shall be granted to the Successful

    Bidder for a period of not less than 20 years and not more than 30 years (all together – the

    “LNG Project”).

    Best Regards

    Gotlib Arie

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About Dan

Dan Farber

Dan Farber has written and taught on environmental and constitutional law as well as about contracts, jurisprudence and legislation. Currently at Berkeley Law, he has al…

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