CNOOC to Develop the Third Chinese LNG Terminal

CNOOC has signed an agreement with Zhejiang Provincial Government to jointly develop China's third LNG terminal in Zhejiang. Mr. Lu Zushan, Governor of Zhejiang province and Mr. Fu chengyu, President of CNOOC signed the agreement for both parties.

The project is envisaged to include three components, an LNG re- gasification terminal, a gas trunk line and a gas fired power plant. The designed capacity of LNG terminal is set around three million tons a year. CNOOC is expected to take a 51% of interest in the project.

Mr. Fu Chengyu, President of CNOOC, commented: "Zhejiang has shown stellar economic growth in recent years. The proposed project is designed to fuel the continuous growth expected and to meet the resulting energy demands in the area. Safe, secure, clean and stable costs of natural gas as a supplemental fuel will undoubtedly benefit Zhejiang customers. CNOOC, an experienced LNG project developer in China, is honored to be a key part of the project."

CNOOC Limited is expected to enter into potential supplying LNG production project to enhance supply security for the project.