CNOOC To Ship Bohai Gas to Shandong in 2003

CNOOC plans to start transmitting natural gas from the Bohai Sea in northern China to Shandong province at the end of next year, a China-based industry official said in a statement. CNOOC and local authorities in Shandong have signed natural gas sales contracts to ensure supply beginning late next year, he said. The length of the supply contract has not been disclosed. The gas will come from CNOOC's Bozhong 2811 gas field, which is under development in the Bohai Sea. The field is about 100 kilometers off the coast of Yantai city in Shandong.

CNOOC has identified 22.5 billion cubic meters of natural gas reserves in the field, with 10.8 billion cubic meters recoverable. The gas will be used at gas utilities such as power plants as well as for household heating and cooking in Yantai.

Construction of a town gas pipeline grid in Yantai and its neighboring counties is expected to start later this year at a cost of 208 million yuan. Local Yantai authorities are now retrofitting a peak-shaving power plant in Yantai to run on natural gas. Initial gas demand for the power plant is forecast at 300 million cubic meters a year.