The Chinese Government wants to see the use of gas increase as it is much less polluting than coal and CNOOC, Sinopec and PetroChina are each developing several LNG terminals.

However, China’s three petroleum giants have baulked at rising gas prices and has failed to sign more LNG supply deals.

CNOOC’s Guangdong terminal received its first shipment of North West Shelf LNG last week and the second shipment will be sent next month. Under the 25-year, $A25 billion contract between CNOOC and the North West Shelf venture, the Australian project will supply China with 3.3 million tonnes of LNG, or 50 shipments a year.

But CNOOC LNG projects in Shanghai and Hainan Province, PetroChina’s projects in Jiangsu Province and Liaoning Province and Sinopec’s projects in Qingdao and Lianyungang, for example, have not secured their gas supply, the report said.