Regional LNG: CNPC marches into LNG industry

China National Petroleum Corporation (CNPC) signed an agreement with Guangxi Autonomous Region on November 4, whereby CNPC will invest about CNY 5.2 billion in jointly launching a liquefied natural gas (LNG) project in Guangxi with the local government, China's SinoCast reported Friday.

CNPC, China Petrochemical Corporation (Sinopec Group) and China National Offshore Oil Corporation (CNOOC) are the three petroleum magnates in China. In the past, they all have their own business scope. The former two are only engaged in exploiting the oil resources in land, while the latter is in offshore oil resources. However,this limitation has been broken.

LNG industry is a nascent industry. CNOOC has involved in this industry, and it has carried out several projects in Guangdong Province, Fujian Province,Shenzhen city and Liaoning Province.Sinopec also carried out LNG project in Shandong Province this year. CNPC's LNG project in Guangxi is the first time for CNPC to involve in this industry.

Three magnates are competing on all businesses concerned with petroleum except that CNOOC can't operate fished oil wholesale and retail businesses, which favors the security of China's energy industry.(*)