Regional LNG: First LNG project sees smooth development in China

Guangdong liquefied natural gas (LNG) project, the first of its kind in China held by China National Offshore Oil Corporation (CNOOC), has basically made definite its downstream buyers, 9 of which have signed the gas-buying contract, and the negotiation with the rest two will soon be brought to finish. The contracts with the upstream and the memorandum about transportation have already signed beforehand, China's People's Daily reported on Thursday.

Guangdong LNG project is one of the top ten projects in Guangdong this year, an important part of the national strategy for natural gas, which is of great importance for the power supply in Guangdong and for a sustainable social and economic development in the province. Now an intense preparation prior to the launching of the project is in progress. The owner of the project has chosen STTS Group (a French-Italian company) as the general contractor by public bidding, which is responsible for the design, purchase and construction of the receiving station of the LNG project. The project of leveling over the ground has also been kicked off. Besides, the detail design of the transmitting gas mainline is in bidding too.

The project of power plants, which are the main consumers of the LNG, is going on well. The main equipment of Huizhou, Qianwan and Dongbu power plants have been ordered, and the construction grounds have basically been leveled. The No. 9 generating set made by Hong Kong Electric Company will go into operation in the middle of 2005 according to the plan, which will use light oil at its initial stage and then use natural gas instead when the LGN project is put into production. Meanwhile, an oil-consumption plan for No.10 set power-generator is now being studied actively. According to some relevant persons, the whole project now develops smoothly and it can be put into operation on June, 2006 as scheduled in the feasibility study report.(*)