CNOOC signs LNG terminal contract

The China National Offshore Oil Corp (CNOOC) and the municipal government of Tianjin have signed an agreement that will see CNOOC construct an LNG facility in Tianjin City.

Due for completion in 2010, the Tianjin plant will include a 3 million metric tonnes per annum LNG receiving terminal amongst some of its other facilities.

According to a CNOOC spokesperson, "The company also plans to build an LNG terminal in Dalian City [and] discussions with the Dalian government are underway."

"CNOOC will also complete by the end of this year a feasibility study on the construction of an LNG terminal in Shanghai city in eastern China," added the official who would not comment on where the LNG imports for the Tianjin project will come from. Indonesia is believed to be the most likely source.

The Chinese giant is currently building its first LNG receiving terminal in Guangdong province.