Dow Jones Newswires quoted Woodside chief executive Don Voelte as saying his company had recently discussed the issue with Shanghai’s vice mayor, given the city’s “concrete demand” for LNG.

Voelte, who said Shanghai’s demand for LNG was between 3 and 6 million tonnes per annum, was speaking on the sidelines of the opening ceremony of Woodside’s China office on Monday, the news service said.

The Beijing office is its first Chinese office.

The Perth-based company is Australia’s largest publicly traded oil and gas exploration and production company.

He was also quoted as saying the Chinese province of Guangdong may consider a second phase in its LNG deal with Woodside. The region’s rapid economic growth meant demand could reach 3Mtpa, he said.

This year, Guangdong will receive its first 3.3Mt LNG cargo from Woodside’s North West Shelf gas project, as part of a 25-year supply contract.

Shanghai has more than 20 million people; Guangdong Province has a population of more than 86 million, with the capital Guangzhou (Canton) having almost 10 million residents.