The $25 billion contract was due to begin at the end of 2005 with a 3.3 million tonne per year supply of liquefied natural gas being shipped to Guangdong for the next 25 years. However, the partners have reported that the contract will be delayed by six months due to SARS related travel restrictions in Guangdong and Beijing, which have delayed the Chinese government project approval process.
Construction of the various parts of the process, such as the LNG receiving terminal at Shekou in Hong Kong, the necessary pipelines and several power stations, cannot begin until China's State Council has given its approval for the project. Currently the National Development and Reform Commission is reviewing the feasibility study on the project, which will then give its recommendations to the State Council.
Final approval for the project is expected in August.
