CNOOC Eyeing Guangdong LNG Project
After the recent acquisition of five oil and gas assets in Indonesia from Repsol YPF, CNOOC is also eyeing natural gas-related upstream assets in China. CNOOC is interested in acquiring a stake in an LNG project in Guangdong. The company says once the decision has been made about the LNG supplier(s) the situation will be clearer. The Guangdong LNG project involves building a 3 million-ton-a-year LNG terminal in Shenzhen and some offsite facilities. The Chinese government and CNOOC's parent are in the process of selecting LNG suppliers. A decision on the selection of LNG suppliers is expected sometime this year.
In mid-April, three suppliers submitted bids to provide liquefied natural gas to China. The three bidders are Australia LNG Pty. Ltd. to represent Australian suppliers, BP Gas Marketing Ltd. for the Indonesia supply and Ras Laffan Liquified Natural Gas Co. for Qatar. BP Gas Marketing is a unit of BP PLC (BP).
CNOOC's parent has a 33% stake in the LNG project, BP PLC holds 30%, Hongkong Electric Holdings Ltd. holds 3% and Hong Kong & China Gas Co. holds 3%. The remaining stakes are held by other mainland entities. CNOOC will need to wait for its parent and the Chinese government to complete the selection before the company will consider acquiring the stake from its parent.