CNOOC, BP to submit LNG feasibility study: Report

A Chinese consortium led by China National Offshore Oil Corp (CNOOC) and oil giant BP aims to finish a feasibility study for China's first liquefied natural gas (LNG) project in August, company officials was quoted by Reuters as saying on Wednesday.

But the study would not be submitted for approval until the government had selected a gas supplier for the three million tonne per year (tpy) LNG import terminal in the southern province of Guangdong, officials said.

"We're trying to submit the feasibility study in August to the State Development Planning Commission," a CNOOC official told Reuters.

"Technically there is no problem. But the prerequisite is that the government must decide on gas suppliers first," said the official, who declined to be indentified.

CNOOC, parent of Hong Kong and New York listed CNOOC Ltd, shortlisted three bidders -- BP Plc in Indonesia, Australia LNG Pty Ltd and Qatar's Ras Laffan Co -- early this year to supply the Guangdong terminal, which is due to come on line in 2005.

Industry sources said the government was expected to announce the winner soon.

BP holds a 30-percent stake in the $616 million first phase project and CNOOC is the leading shareholder with 33 percent.

A phase-two expansion would boost the size of the terminal to five million tonnes in 2009. (*)