Regional LNG: Petronas pursues China LNG supply opportunities: Report

Petroliam Nasional Bhd., or Petronas, Malaysia?s national oil and gas firm, is in discussions with China?s State-owned oil and gas firms for potential liquefied natural gas (LNG) supply contract opportunities, Shenzhen Daily of China reported Tuesday.

Petronas is in ?early? negotiations with China National Offshore Oil Corp., or CNOOC, Sinopec and PetroChina Co. as well as coastal provincial governments, Datuk Abdul Rahim Hj Hashim, vice president of Petronas? gas business, said.

?We are talking with all parties... but (actual contracts) depend on where they?re going to build these (LNG) facilities,? he said.

Petronas bid unsuccessfully on a deal to supply LNG to China through a receiving terminal under construction in Guangdong that will start operations in late 2005.

That contract went to a joint venture providing LNG from Australia?s North West Shelf project that included Australia-based Woodside Petroleum Ltd. as operator.

The Malaysian firm?s plans reflect the eagerness of foreign oil and gas firms to satisfy China?s seemingly inexhaustible thirst for imported gas and oil products.

Petronas launched its first subsidiary company in China in Shenzhen in July. (*)