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CNOOC gas terminal in Zhuhai

By Wan Zhihong (China Daily)
Updated: 2009-05-13 08:03

China National Offshore Oil Corp (CNOOC) plans to invest 20 billion yuan in Zhuhai in Guangdong province to build an offshore engineering base and a gas terminal, a move that will further expand its presence in southern China.

The country's largest offshore oil producer signed a framework agreement with the local government in Zhuhai for the investment last weekend, said a source with CNOOC yesterday. The 20-billion-yuan investment will mainly go towards construction of the engineering base, he said.

But both parties have not yet decided when to complete the 20-billion-yuan investment, he said, declining to be named.

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The gas terminal in Zhuhai will either receive natural gas produced by CNOOC's oilfields in the South China Sea, or gas imported from foreign countries, said the source.

Compared to the four LNG (liquefied natural gas) bases in operation or under construction by CNOOC currently, the capacity of the Zhuhai terminal would be relatively small, he said.

CNOOC had its first LNG terminal in Shenzhen, in Guangdong province. It started operation in May 2006.

Analysts said CNOOC's investment plan in Zhuhai is in line with the company's plan to emerge as a stronger player in southern China... 

The full text is available in the April Issue of China Energy. Please visit　publications for more subscription details.