BEIJING, Nov. 5, 2009 (Xinhua News Agency) -- China Petroleum & Chemical Company ( Sinopec (NYSE:SNP) , SNP.NYSE; 600028.SH), Wednesday inked a framework agreement w ith US oil major Exxon Mobil in Papua New Guinea capital Port Morseby on liquefied natural gas (OOTC:LNGLF) (LNG) supply cooperation, the Chinese company

said Thursday.

The deal was signed during Chinese Vice Premier Li Keqiang's vis it to Papua New Guinea.

According to the agreement, Sinopec is to purchase 2 million ton s of LNG per year from Exxon Mobil's LNG project in Papua New Guinea, the PNG project.

Wang Zhigang, senior vice president of Sinopec, said the Papua N ew Guinea gas resources will be supplied to the company's liquefied na tural gas receiving station in Qingdao Port of Shandong Province in ea st China.

It is learned that stakeholders of the LNG project are now in ta lks with Sinopec to finalize a formal LNG purchase deal, which is expe cted to be closed later this year.

Exxon Mobil owns 41.5 percent of the PNG project, Oil search Ltd , Santos Ltd (OOTC:SSLTY) and Nippon Oil Co. hold 34 percent, 17.7 percent and 5.4 percent of the project respectively.