The state owned CNOOC said three areas are under consideration for the projects including the Pearl River Delta in Guangdong Province, the Yangtze River Delta in eastern China and the Bohai Bay area, including Beijing.

"The central government is very supportive of the plans to do these projects in the economically developed areas," said Wang Jianwen, vice president of CNOOC Gas and Power, adding that each LNG terminal usually costs US$500-600 million to build, depending on its size.

China is currently building its first terminal in Guangdong and its second terminal in the southeastern province of Fujian as it aims to boost use of natural gas to 7% of its energy mix in 2010 from 3%.

The Guangdong terminal is expected to start importing Australian LNG as early as next year, while the Fujian terminal is scheduled to start receiving LNG from Indonesia in 2007.

Emerging demand from China, and other major markets such as the United States and India, has sparked strong competition among LNG suppliers, including Australia, Indonesia, Malaysia, and the Middle East.