The Chinese government has already given its consent for the project based on the overall proposal and feasibility report. This means, however, China National Offshore Oil Cooperation will no longer have a monopoly on China’s LNG market and coastal areas once the project begins operation in 2007.
LNG supply for Shandong project will be sourced from Sakhalin and Sinopec is hoping to develop a JV with the Shell Group to boost further the capacity of the facility to 10 million tons per annum.
Construction on the project is expected to begin at the end of the year.
