BP & CNOOC Join Forces to Construct a New LNG Receiving Terminal in China

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). BP plc (London, U.K.) and the Chinese National Offshore Oil Corporation (CNOOC) (Beijing China) are moving ahead with a planned LNG receiving terminal (PEC 88000215). The companies have signed contracts for gas sales, financing, and construction for the $895 million project located near the village of Daping in Guangdong province.

BP subsidiary, BP Gas Power & Renewables (London, U.K.) with a 30 percent stake and CNOOC with a 33 percent stake have awarded the Engineering, Procurement, and Construction contract to a consortium lead by Saipem (Milan, Italy) and includes Technigaz, Sofregas, and Technimont. The venture partners expect construction on the new terminal to begin in late 2004 and construction is expected to be completed and commercial operations commencing in early 2007.

The LNG terminal will have a receiving capacity of nearly 3.3 million tons per year of LNG, which will be sourced from the Tangguh natural gas liquefaction plant (PEC 93000145) in Indonesia, which is nearing the construction phase itself. The Guangdong facility is the first of three planned LNG receiving and re-gasification terminals proposed for the Chinese coast to reach the financing and construction phase.