Regional LNG: China premier to meet BP chief, deal approval seen

China's Prime Minister Wen Jiabao is set to meet the head of oil giant BP in London this weekend and may next week give his seal of approval to one of the UK firm's projects in the booming and energy-hungry nation, Reuters reported Friday.

"The prime minister will have a private meeting with (Chief Executive) John Browne on Sunday," said a BP spokeswoman.

She would not say anything about investment deals, but according to British government sources, a number of investment deals by British firms worth a total of around $1 billion may get the Chinese state seal of approval on Monday.

BP claims status as the biggest foreign oil company investor in China, with some $3 billion already invested there in commercial projects.

This year it sold out of two equity holdings in Chinese oil firms, but stressed it still sees fast-growing China as a core market for oil, refined products, natural gas and chemicals.

One new project close to fruition and involving BP is a liquefied natural gas (LNG) import terminal and associated bulk gas pipeline in Guangdong Province, with an estimated capital cost of over $600 million.

The first phase aims to build a three million ton per year re-gasification plant by 2005. LNG is the growth driver of the world's oil and gas industry.

The gas is supercooled until it liquefies into volumes small enough to transport on special ships to markets where pipelines are unable to satisfy demand.

BP also has ambitious plans to bring gas to China by pipeline from the giant Kovykta gas field in Siberia. (*)