China to award RI with contract to supply LNG to Fujian: Update-1

China has decided to award Indonesia with the contract to supply liquefied natural gas (LNG) to the province of Fujian and Australia with the contract to supply LNG to the province of Guangdong, according to a highly-placed source at the Ministry of Industry and Trade.

China is scheduled to announce the decision Thursday afternoon, according to the source who wanted to remain anonymous.

Under the contract, the source said, Indonesia will supply Fujian province with 2.5 million tons of LNG per year over 20 years starting late 2005 or early 2006. The LNG supplies will be taken from the planned Tangguh LNG center in Papua owned by a consortium led by Anglo-American energy firm BP PLC.

Meanwhile, according to the source, Australia will be awarded with the contract to supply Guangdong province with 3 million tons of LNG annually over 20 years starting 2005. The LNG supplies will be taken from the North West Shelf LNG center, which is owned by a consortium led by Woodside Petroleum Ltd. BP is a minority shareholder in the project.

Meanwhile, Dow Jones Business News also said on Thursday that Australian LNG had been awarded Guangdong LNG.

Woodside Petroleum Ltd. share price soared Thursday following a report from Beijing that the North West Shelf consortium was given the giant Guangdong liquefied natural gas contract.

Woodside shares were 7.5% or 97 cents higher at A$13.95 around 0350 GMT.

Brokers said that a win for the Shelf, which is operated by Woodside, could add more than A$1 to the company's share price. Woodside is an equal one-sixth owner of the venture that was competing for the China contract with projects from Indonesia and Qatar.

A Woodside spokesman said the company hasn't been formally informed that the Shelf has won the project.

"We haven't received any confirmation at this point in time," the spokesman. (alex)