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Under the terms of the agreement, Tangguh will provide 2.5 million metric tons of LNG per annum for 25 years starting 2007.
CNOOC GM Fu Yucheng said, “Based on this agreement, Fujian LNG project will be set up to provide 2.5 million-ton LNG each year to ensure the gas demand for industrial use, and the daily use in five cities in Fujian.”
“The company [will] start to supply LNG to the industries and four million citizens in Fujian by 2007,” added.
The Fujian Natural Gas Co, a unit of state-run CNOOC, has also signed agreements to sell gas to five urban gas companies and three gas-fired power companies along with an LNG transportation agreement with the Fujian LNG Project Office. In addition, Fujian Electricity Corp inked agreements for the purchase of electricity from the gas-fired power plants.
Phase One Fujian LNG project will begin this year with 340km of gas transmission lines and pipelines being built. Phase Two will see the doubling of the LNG supply to five million tons per annum.
