Abu Dhabi National Oil Company (Adnoc) will double its supply of crude to China National Petroleum Corporation (CNPC) as part of an agreement that will come into effect in 2014.
The 20-year agreement says that Abu Dhabi will increase its supply to the Chinese state-owned oil company to 200,000 barrels a day (b/d), says an Adnoc official quoted by Reuters.
Adnoc will also try and cover any shortfalls in supply before the agreement comes into place, said Sultan al-Mehairi, director of marketing and refining.
Chinese demand for crude is projected to grow strongly. Bank of America/Merrill Lynch estimates that demand is set to increase to 10.3 million b/d in 2012, from 9.6 million b/d this year.