Regional LNG: Petrochina to build LNG terminal at Hebei

Chinese oil firm PetroChina has agreed to build a US$1.2 billion LNG project in the northern province of Hebei, a company official was quoted by reuters as saying Monday.

The official said that the project aimed to meet the region's surging energy deman including Beijing and the neighbouring city of Tianjin.

PetroChina signed framework agreements last Friday with the governments of Beijing and Hebei to build the LNG terminal in Tangshan city, the official said.

The first phase capacity of the LNG terminal will be 6 million tonnes a year, rising to 10 million tonnes a year in the second phase. The fisrt phase is expected to be completed by 2009.

PetroChina will take a 51 percent stake in the project and has submitted a project proposal to the National Development and Reform Commission for approval.

The oil major is talking with other nations, including Australia and Indonesia, about importing LNG, the official added.(*)