New model of ensuring supply and price of natural gas: signing of China’s first five-year medium and long-term resource purchase and sales agreement

With the support and coordination of the Guangdong Provincial Development and Reform Commission and the Energy Bureau, CNOOC signed a five-year medium and long-term LNG (liquefied natural gas) resource purchase and sales agreement through the Shanghai Petroleum and natural gas trading center with 12 large urban gas and power plant users including Guangdong China Resources gas, Huadian, state power investment, Foran Energy Group Co.Ltd(002911) , Guangzhou Gas and Guangzhou GCL. The total contracted amount is 10 million tons, 2 million tons / year. This is the first innovative long-term LNG resource purchase and sales contract signed between China’s upstream resource suppliers and downstream customers.