LNG (LIQUIFIED NATURAL GAS)

First deliveries under massive Chinese LNG deal

THE North West Shelf Venture will kick-off a $A25 billion contract with CNOOC this week, with the news that the first liquefied natural gas shipment under the deal is almost ready to leave Karratha bound for China’s Guangdong Dapeng LNG Terminal.

First deliveries under massive Chinese LNG deal

Signed in 2002, the 25-year contract will see 3.3 million tonnes of LNG delivered each year to the newly constructed terminal. The deal represents the NWS Venture’s largest single export contract to date.

The first 50,000 shipment has already been delayed one month, as finishing touches were put on the terminal, which was built and owned by 11 domestic and foreign corporations, including BP and CNOOC. CNOOC is China’s largest offshore oil producer by output.

The gas will be piped from Dapeng to power plants in five cities – Guangdong province’s regional capital Guangzhou, Hong Kong, and the industrial centres of Dongguan, Foshan and Shenzhen.

The Australian newspaper speculated that the contract would help close Australia’s $6 billion trade deficit with China. It said LNG would now become Australia’s third-biggest export item to the country, after iron ore and wool.

China plans to increase its gas-fired power generating capacity from 2.8% to 10% by 2010 to help reduce its reliance on oil imports.

TOPICS:

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

editions

ENB CCS Report 2024

ENB’s CCS Report 2024 finds that CCS could be the much-needed magic bullet for Australia’s decarbonisation drive

editions

ENB Cost Report 2023

ENB’s latest Cost Report findings provide optimism as investments in oil and gas, as well as new energy rise.

editions

ENB Future of Energy Report 2023

ENB’s inaugural Future of Energy Report details the industry outlook on the medium-to-long-term future for the sector in the Asia Pacific region.

editions

ENB Cost Report 2021

This industry-wide report aims to understand current cost levels across the energy industry