CNOOC's Zhejiang LNG Project Receives Approval from NDRC

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Beijing--July 14, 2009--Researched by Industrial Info Resources (Sugar Land, Texas)-- China National Offshore Oil Corporation (NYSE:CEO) (CNOOC) (Beijing) received official approval from the National Development and Reform Commission (NDRC) on June 29, 2009 for a liquefied natural gas (LNG) project in east China's Zhejiang province. This is another key project in CNOOC's deployment in LNG industry following the approval of its LNG projects in Guangdong, Fujian and Shanghai, CNOOC announced on July 8, 2009.

Zhejiang LNG Project includes an LNG terminal, a special LNG port, as well as associated natural gas pipeline, and is a key energy project to be built by CNOOC in cooperation with Zhejiang province. The LNG terminal and port project will be built and operated by CNOOC Zhejiang Ningbo LNG Company Limited (Ningbo, Zhejiang), a company jointly invested by CNOOC Gas & Power Limited (Beijing), a wholly-owned subsidiary of CNOOC, Zhejiang Energy Group Company Limited (Hangzhou, Zhejiang) and Ningbo Electric Power Development Company Limited (Ningbo, Zhejiang). The project occupies an area of 46.9 hectares and the total investment for Phase I will be about $1.02 billion, including the construction of a LNG port with single berth capacity ranged from 80-266 thousand cubic meters and three concrete tanks each of 160 thousand cubic meters. Upon the completion of Phase I in 2012, the project will be capable of handling 3 million metric tons of LNG every year. The design annual capacity of the project will be further expanded to 6 million metric tons in Phase II.

The associated natural gas pipeline will be built and operated by Zhejiang Natural Gas Development Company Limited (Hangzhou, Zhejiang), a joint venture of Zhejiang Energy Group, CNOOC Gas & Power and Zhejiang Southeast Electric Power Company Limited (Hangzhou, Zhejiang) (SHA: 900949). The pipeline has a total length of 38.7 kilometers with a design capacity of 4.2 billion cubic meters per year in Phase I and 8.4 billion cubic meters per year in Phase II.

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