Aug 8 2002
Australia’s North West Shelf Venture (NWSV) in Western Australia has been chosen as the preferred supplier for Phase 1 liquefied natural gas (LNG) requirements of the Guangdong LNG Terminal and Trunkline project.
Pending completing of the deal, the NWSV will supply the Guangdong Project with 3 million tons per year of LNG for 25 years. Supply will commence in 2005 and will satisfy phase 1 requirements.
The Guangdong Project is expected to cost US$850 million. Phase 1 involves construction of a LNG import terminal and high pressure pipeline along the eastern side of the Pearl River delta as well as pipeline into Hong Kong. In phase 2, the pipeline will be extended around the western side of the Pearl River delta.
It has also been proposed that:
- The China National Offshore Oil Company (CNOOC) will become a member of the joint venture and be given the opportunity to acquire an interest in the venture
- Ship owning and management companies will be established between NWSV and Chinese shipping companies COSCO and China Merchants for transportation of the LNG
The decision to source LNG from the NMSV reinforces the competitiveness and reliability of the Australian supplier.
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