CNOOC to launch LNG project in Fujian: Report

Chinese state owned Offshore oil major China National Offshore Oil Corp (CNOOC) has signed an agreement with the Fujian provincial government on a liquefied natural gas (LNG) project in the East China province, Xinhua News Agency reported on Friday.

The report said the project included building an LNG terminal in the Meizhou Gulf and a trunk pipeline to deliver gas to seven customers, which have agreed to take it.

CNOOC would hold a 60 percent stake in the terminal and pipeline and the Fujian Investment & Development Co., Ltd. would own the remaining 40 percent, it said.

Company official said it was too early to say how much the project would cost, according to China Daily.

Construction of the first phase of the terminal, designed to handle 2.5 million tons of LNG a year, was expected to start in 2004 and the terminal was due to begin operation in 2006, it said.

As previously reported, the Tangguh gas field was picked as the LNG supplier for the Fujian terminal. (*)