Chinese state-owned China National Offshore Oil Corp. and the Fujian government have inked an agreement on the principles of co-operation of integrated development of LNG imports and gas market in this south China province. Other than building an LNG imports receiving terminal and attached trunk pipeline line in Fujian, the integrated project will also include the development of two gas-fired power stations and pipeline distribution networks in five cities, the official noted. The power projects are planned for Nanpu and Songyu, while the pipeline networks will be built in Fuzhou, Putian, Quanzhou, Xiamen, and Zhangzhou. CNOOC will hold 60% of the LNG terminal and trunkline project. A company under the Fujian government will have the remaining 40% stake. CNOOC will take 10â25% equity in the seven Fujian power and gas distribution projects. The company has engaged BP in exclusive negotiations for the latter to supply LNG from Indonesia’s Tangguh gas project to the 2.5-mil mt/year first phase of the Fujian receiving terminal. CNOOC has preliminarily scheduled construction of the terminal and trunkline to start in 2004, with commercial operation of the project expected to begin some time in 2006.
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