Regional LNG: CNOOC, Zhejiang sign agreement to build on China's third LNG terminal

State-owned Chinese oil giant CNOOC Group, the parent of Hong Kong-listed CNOOC Ltd, signed an agreement with Zhejiang province on Wednesday to build China's third liquefied natural gas terminal, a source close to the deal was quoted by Reuters as saying

The terminal would have annual production capacity of three million tonnes, the source, who asked not to be identified, told Reuters. No other details were immediately available.

China is investing billions of dollars to source LNG -- natural gas, super-cooled and condensed for transport -- from Australia and Indonesia, as it seeks with its fast-growing economy to diversify its energy mix and ease its reliance on dirtier coal.

CNOOC Group has already invested in two LNG terminals in China -- in the southern province Guangdong and the southeastern province Fujian.

China is expected to buy 10 liquefied natural gas tankers worth a combined $1.6 billion over the next few years, Qin Xiao, chairman of shipper China Merchants Group Ltd, said last week.(*)