The deal can be seen as the Chinese having a bet 'each way', in case the undeveloped Gorgon project remains just that. Earlier this year, in August, CNOOC signed a memorandum of understanding with Chevron that could lead to it taking equity in the Gorgon gas reserves, also located in the north-west of WA.
The deal is conditional on the Shelf joint venture securing the supply contract for the proposed Guangdong receival terminal, China's first LNG project. "CNOOC has long expressed desire to secure upstream assets for LNG import. We're looking forward to similar agreements with all other potential suppliers," CNOOC chairman and CEO Mr Wei Liu-cheng said.
Construction of the $US600 million receival terminal looks likely to begin in 2002 with production slated for late 2005.
