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Companies line up in bidding for first LNG terminal

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SCMP Reporter

Hong Kong utilities majors CLP Holdings and Cheung Kong Infrastructure (CKI) will be told next month whether they will be on the bidding shortlist to build China's first liquified natural gas (LNG) terminal in Shenzhen.

Foreign parties would take up to a 30 per cent stake in the three million-tonne terminal and trunk LNG pipeline - costing US$870 million.

Reuters yesterday quoted an official with the project's executive office as saying three consortiums would be chosen from 10 bidders on about October 10 for a second round of bidding.

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A decision would be made on the potential foreign joint-venture partner by the end of this year.

CLP Holdings, which supplies electricity in Kowloon, the New Territories and Lantau, has formed a consortium with Exxon Mobil of the United States and Japan Guangdong LNG. CKI, on the other hand, is bidding with Japan's Itochu.

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Other foreign bidders include BP Amoco, Enron, and Sumitomo and consortiums including China Australia Terminal and Korea Gas; Mitsubishi Corp and Malaysia's Petronas; Royal Dutch/Shell, Marubeni Corp and Osaka Gas; TotalFina Elf and Gaz de France.

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