Signed in 2002, the 25-year contract will see 3.3 million tonnes of LNG delivered each year to the newly constructed terminal. The deal represents the NWS Venture’s largest single export contract to date.
The first 50,000 shipment has already been delayed one month, as finishing touches were put on the terminal, which was built and owned by 11 domestic and foreign corporations, including BP and CNOOC. CNOOC is China’s largest offshore oil producer by output.
The gas will be piped from Dapeng to power plants in five cities – Guangdong province’s regional capital Guangzhou, Hong Kong, and the industrial centres of Dongguan, Foshan and Shenzhen.
The Australian newspaper speculated that the contract would help close Australia’s $6 billion trade deficit with China. It said LNG would now become Australia’s third-biggest export item to the country, after iron ore and wool.
China plans to increase its gas-fired power generating capacity from 2.8% to 10% by 2010 to help reduce its reliance on oil imports.
