Regional LNG: Competition for LNG to intensify with China shortfall
Wednesday, November 2 2005 - 11:31 PM WIB
BP China Ltd president for gas, power and upstream Dan Westbrook said that China's domestic supply, which is currently sufficient, has not been able to keep pace with demand growth estimates. He forecast the supply shortfall would increase to 50-70 bcma by 2020.
China's first LNG terminal will start operations in the second quarter of next year and 10 more terminals are planned over the coming five to seven years, Westbrook said adding that acquiring long-term and stable LNG supplies for these will be "critical."
"Competition for supplies will increase, China will be sourcing supply in competition with large future buyers such as the US and India and existing large importers such as South Korea and Japan," he said.
Westbrook made the comments at a shipping forum in Shanghai.
Speaking on the sidelines of the event, Westbrook said BP was interested in developing further joint ventures with Chinese partners, adding that local authorities consider energy a strategic matter. "It's a balance for China to consider 'does it hurt me or help me to have a foreign partner in these things,'" he said.
He would not offer any comment on recent media reports claiming BP is planning a major alliance with state-owned energy major Sinopec.
"I can't comment on that, but we are always in discussions with our partners about doing something bigger and better and more efficient and more cost effective."
Reports have suggested that the company was close to a deal that will rival its 7 bln usd joint venture with TNK in Russia.
BP chairman John Browne is to visit China this month for meetings with officials from China's major oil companies, Sinopec, PetroChina and CNOOC.
BP has around 18 joint ventures in China, around seven of those with Sinopec.
It has so far invested over 3.5 bln usd in the country since it started doing business here about 30 years ago.(*)