China Direct

ExxonMobil puts foot on gas with Zhejiang Energy LNG Deal

CBI member, Exxon Mobil has announced that it has signed a sales and purchase agreement with Zhejiang Provincial Energy Group for liquefied natural gas supply. The deal, which was signed on Monday, will see Exxon Mobil supply Zhejiang Energy with 1 million metric tonnes of LNG annually over 20 years.

Peter Clarke, senior vice-president of LNG at Exxon Mobil said, “This sales and purchase agreement represents an important milestone and provides a solid foundation for our strategic partnership with Zhejiang Provincial Energy Group [and…] developing a major LNG gateway in the Ningbo-Zhoushan region. [ExxonMobil] looks forward to continuing our support for Zhejiang Energy during the construction, commissioning and operation of its [new] Wenzhou LNG receiving terminal.”

Zhejiang Energy is building a $1.3 billion receiving terminal for the fuel in Wenzhou, with an annual handling capacity of 3 million tonnes. Zhejiang Energy will partner with Chinese state oil and gas major, Sinopec for the development of the terminal. ExxonMobil already has another separate long-term supply agreement with Sinopec in China, extending the two companies’ collaboration in the market.

China has been ramping up its efforts to import LNG over the past few years. The country imported more than 53 million tonnes of LNG last year, which accounts for 60% of total natural gas imports. Consequently, the Chinese government has sought foreign investment in the country’s LNG infrastructure to help boost China’s capacity to handle greater LNG flows.

Regular readers of China Direct may remember that back in the September of last year, Exxon Mobil announced that it had agreed with Chinese officials to invest $10 billion in an LNG terminal and petrochemicals plant in Guangdong province.

This is part of the company’s efforts to diversify their global portfolio, and includes diversifying further into the LNG supply chain and better catering to the needs of the China and Asian energy markets.

CBI makes the case for British Business in China

 

CBI MAKES THE CASE FOR BRITISH BUSINESS IN CHINA

The CBI’s Director-General is visiting China this week on a trade visit with the Prime Minister, the Rt. Hon. Theresa May.

Carolyn Fairbairn, CBI Director-General, said:

“The Sino-British relationship is a tremendous success story. From services to schools, and iPhones to tea, our countries have a special and integral place in each other’s lives.

“British businesses are keen to play their part in further deepening and engraining the economic ties between China and the United Kingdom. With the consumer market alone worth over £3.3 trillion, this relationship creates thousands of jobs in the UK and China, raising living standards and boosting productivity.

“As the UK forges a new global trading future, it is well ahead of the curve in making the most of its relationship with the world’s fastest growing economy. By making inroads into China’s lesser economically known regions, the UK stands to profit from China’s move from manufacturing and infrastructure into technology and services, writing a new chapter in the golden era of relations.”

30 January 2018

Notes to Editors:

Read the CBI’s latest report on British trade and investment with China, Sterling Assets China.

Across the UK, the CBI speaks on behalf of 190,000 businesses of all sizes and sectors. The CBI’s corporate members together employ nearly 7 million people, about one third of private sector-employees. With offices in the UK as well as representation in Brussels, Washington, Beijing and Delhi, the CBI communicates the British business voice around the world.

Media Contact:

CBI Press Office is available 24 hours a day on 0207 395 8239, or email: [email protected]. Follow the CBI (@CBItweets), Carolyn Fairbairn (CBICarolyn) and CBI China (CBIBEIJING) on Twitter.

It's snowing in Hangzhou and Wenzhou - thanks to SAB Miller!

 

[Image courtesy of www.sabmiller.com]

 

CBI member SABMiller recently announced that China Resources Snow Breweries Limited (CR Snow), its joint venture with China Resources Enterprise Limited (CRE), is launching a trial of SABMiller's international premium brand, Miller Genuine Draft, in Zhejiang province.

Following a launch event held in Hangzhou on 16 January, Miller Genuine Draft is now initially available in Hangzhou and Wenzhou.

Ari Mervis, SABMiller's Managing Director, Asia Pacific, said, "This is an exciting opportunity to introduce one of our international brands into the fast-growing premium segment in China in a way which takes advantage of CR Snow's strong market position in the region."

Please click here to read the full press release by SABMiller and here for additional media coverage.