Posted by: mel | May 27, 2009

CNOOC receives Indonesian LNG; starts running Fujian

Reuters | BEIJING | 25 May 2009 

China National Offshore Oil Corp (CNOOC) has received its first cargo of liquefied natural gas (LNG) from Indonesia under a long-term contract and is expecting a second cargo before the end of the month.

The leading Chinese LNG developer said it has started operating its Fujian LNG project after receiving the first shipment.

Fujian was the second LNG project in operation after CNOOC in 2006 brought on line the Dapeng facility in neighbouring Guangdong province.

The cargo, 150,000 cubic metres or 69,000 tonnes, was unloaded from May 15 to 17, CNOOC said in statements on its website (

The chilled gas was sourced from Indonesia’s Bontang LNG plant due to delays at the Tangguh project.

Under the agreement, Fujian will receive 2.6 million tonnes of LNG each year from the BP-led (BP.L) Tangguh plant.

Fujian will take in a second cargo from Indonesia before the month end, said an industry source who monitors shipments.

The voyage from Indonesia to Fujian requires about nine days, according to the source.

Indonesia is likely to begin shipping Tangguh LNG to China in June, the country’s energy minister was quoted as saying by official Chinese media on May 14.

CNOOC, parent of CNOOC Ltd (0883.HK)(CEO.N), said Fujian would receive 15 more deliveries of LNG from Indonesia this year.

(Reporting by Jim Bai and Chen Aizhu; Editing by Ken Wills)


Second Chinese LNG terminal begins operations

Warren R. True
OGJ Chief Technology Editor-LNG/Gas Processing

HOUSTON, May 26 — China National Offshore Oil Corp. received the first LNG commercial cargo at its Fujian terminal earlier this month.

Unconfirmed reports said the cargo arrived aboard the 145,700-cu m Tangguh Towuti from Indonesia’s Bontang liquefaction plant. BP’s Tangguh project is contracted to deliver cargoes to Fujian but its opening has been repeatedly delayed. Fujian is to receive 2.6 million tonnes/year from Tangguh once the plant is operating.

Fujian is China’s second terminal to begin operating. BP has operated the 6.2 million tpy Dapeng LNG terminal in neighboring Guangdong Province since 2006. The Fujian terminal was commissioned last year.

Later in 2009, CNOOC expects to open a third terminal, at Shanghai, that initially will be able to import 3 million tpy with expansion of another 3 million tpy on tap.

Contact Warren R. True at


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