CNOOC to source for more Aussie LNG
Wing-Gar Cheng and Ying Lou
2006-05-25
CNOOC Ltd, China's largest offshore oil producer, hopes to source more liquefied natural gas from Australia, with the first cargo of LNG from the North West Shelf venture expected as early as today, Chairman Fu Chengyu said.
The shipment of 125,000 cubic meters of LNG, loaded on May 17, is the first under a 25-year, A$25 billion (US$18 billion) agreement. The LNG will be delivered to a US$600 million import terminal built by CNOOC parent, China National Offshore Oil Corp, in the southern city of Shenzhen in Guangdong Province. The project is being expanded and will require more of the fuel.
"The construction of the second phase of the terminal has already started," Fu said after the company's annual shareholders meeting in Hong Kong yesterday. "Some of the LNG for the second phase will be from Australia's North West Shelf."
China wants to boost the share of its energy produced from natural gas to 8 percent by 2010 to cut pollution and reduce the country's reliance on coal and crude oil. The North West Shelf's deal to supply more than 3.3 million metric tons a year of LNG to China will involve about 50 cargoes annually.
Customers in Guangdong Province will be able to use LNG from Australia a month after its arrival, Fu said. CNOOC is working on increasing pipeline capacity at the terminal in preparation for further expansion.
The A$19 billion LNG venture is operated by Woodside Petroleum Ltd, Royal Dutch Shell Plc, BP Plc, BHP Billiton and Chevron Corp. A venture between Mitsui & Co and Mitsubishi Corp also has stake in the North West Shelf venture.
CNOOC is still in talks over LNG it wants to buy from the BP Plc-led Tangguh project in Indonesia, Fu said.The famous tattoo inspired tiger prints with decorative studding on the replica omega add a stunning look.This brand also has an awesome collection of mulberry replica handbags most of which feature a bold embroidered design with rich colors and rhinestone embellishments that make unique.