hey’re buying from PNG as well. And although we hear a lot about a gas glut due to the recession, the growth in import terminals is actually heating up, not only in China…
- BEIJING: China, the world’s second-biggest energy user, has agreed to buy liquefied natural gas (LNG) from ExxonMobil Corporation’s US$11 billion (K32 billion) venture in Papua New Guinea, Bloomberg reports.
- A state oil company signed an agreement to buy two million metric tonnes of LNG a year, about 32% of the project’s proposed output, under a multi-year contract, the two people, declining to be identified because the talks are confidential, said.
- China is building more than 10 LNG terminals on the eastern coast to meet a government target of doubling the use of the fuel by next year.
- ExxonMobil and its partners, which include Santos Ltd and Oil Search Ltd, plan to give their final go-ahead for the project, the largest investment in PNG, by the year end and start production by 2013-14.
- “There’s room for China to add LNG supplies by 2015 because of doubling of terminal capacity between 2010 and 2015,” Tony Regan, an independent energy consultant and a former Royal Dutch Shell Plc executive, said. “They would be in the market for additional volumes from 2015 when Papua New Guinea supply comes on.”
- The agreement, which needs approval from the buyer’s government, is for the sale of two million metric tonnes of LNG a year to “a major Asian customer”, Port Moresby-based Oil Search said in a statement to the Australian stock exchange last Tuesday. Oil Search declined to identify the buyer when contacted by phone yesterday.
- “Negotiations are progressing with targeted LNG buyers in the Asian region,” Miles Shaw, public affairs manager for ExxonMobil’s Esso Highlands PNG LNG unit, said in an e-mail yesterday. “The project anticipates a final investment decision will be taken later this year with a corresponding first LNG cargo targeted for late 2013-14.”
- China National Offshore Oil Corporation (CNOOC) had agreed to work with InterOil Corp and Petromin on a second LNG project in the country. Wu Mengfei, CNOOC chief financial officer, declined to comment on whether they were buying fuel from the ExxonMobil-led project.
- Phone calls to China Petroleum and Chemical Corporation, the nation’s biggest refiner, were not returned. LNG is natural gas that has been chilled to liquid form for transportation by ship to destinations not connected by pipeline.
- China was doubling LNG import capacity from 15.3 million tonnes a year next year to 36.5 million tonnes in 2015, Regan said. China had contracted supplies of 14.8 million tonnes a year by next year, and faced a shortage of about 15.7 million tonnes in 2015, he said.
- China had signed agreements with producers in Qatar, Australia, Indonesia and Malaysia to purchase about 21 million tonnes a year of the fuel by 2015, Regan said. – PNS
But this is not all:
- China, the world’s second-largest energy user, aims to double the use of LNG by 2010 to reduce pollution
- China is adjusting its plan to develop LNG because of changes in the economy, Hu said. The current lower prices offer a “good opportunity” for LNG buyers such as China, he said.
And, of course, lest we forget:
Apr 17, 2009 (BBC Monitoring via COMTEX) — A Chinese state oil and gas company has joined Papua New Guinea’s second liquefied natural gas (LNG) project. China National Offshore Oil Corporation (CNOOC) on Wednesday [15 April] signed heads of agreement in Beijing with joint venture partners InterOil Corporation and Petromin PNG Holdings Ltd.
The agreement followed official talks between the Chinese Premier Wen Jiabao and PNG Prime Minister Sir Michael Somare. The two leaders witnessed the signing, which is viewed as one of the major achievements of Sir Michael’s official visit to China.
Project leader InterOil and the State-owned Petromin have been holding discussions with a number of major oil and gas companies to bring in a strategic partner who will underwrite the project.
Petromin chief executive Joshua Kalinoe said the heads of agreement allowed CNOOC to participate in the process.
“More significantly, the heads of agreement provides for CNOOC to discuss the terms on which it will provide a carry for Petromin in respect of the financing of the State’s equity in the project,” Mr Kalinoe said in a statement released in Port Moresby yesterday. He added that they were committed to quickly agreeing on the commercial terms for financing and entering into binding arrangements as soon as possible.
Mr Kalinoe said he was excited about the progress on the financing arrangements and commended Sir Michael for the support and political leadership that he had provided for the project.
“For Petromin and the people of Papua New Guinea, this is a major project where the benefits will flow throughout the national economy. Petromin, as the national petroleum and mining company will hold equity in the gas field and the LNG plant for the benefit of all the people of Papua New Guinea,” he said.
Mr Kalinoe said CNOOC and InterOil had undertaken to assist Petromin to build capacity and experience in all facets of the LNG project and to create jobs, skills training and long-term economic benefits for Papua New Guineans.