First shipment for China National-BP venture to come from North West Shelf
China National Offshore Oil Corp, parent of Hong Kong-listed CNOOC Ltd, expects to secure supply from Australia to partly fill the second phase of its liquefied natural gas (LNG) project in Shenzhen despite tight global supply.
President Fu Chengyu, also CNOOC's chairman, said additional infrastructure investment for the seven-million-tonne-a-year second phase of the project was 'small', as much of it had been built in the first phase.
The biggest hurdle was sourcing sufficient gas at a price affordable to mainland consumers, he said.
'Some of the gas will come from Australia ... [at least] we hope so,' he said after CNOOC's annual shareholders' meeting, without naming the potential locations. 'The rest we can source from many places in the world.'
The Shenzhen LNG import project, 33 per cent owned by China National and 30 per cent by British energy giant BP, was due to receive the first shipment in two days from the North West Shelf gas project, located offshore West Australia, Mr Fu said.
Gas is expected to start flowing by late next month from the 3.7 million-tonne-a-year first phase of the processing terminal, to residential and industrial customers in the Pearl River Delta.