China chooses BP as partner for LNG project

HONG KONG (AFX-ASIA) - China has chosen British Petroleum as its foreign partner for a liquefied natural gas (LNG) project to be situated in Shenzhen, the official Xinhua news agency reported, quoting the project executive office.	    In a despatch from Beijing monitored here, Xinhua said the company is invited to sign a cooperation principle agreement with the Chinese partners on the project and then conduct joint feasibility studies. 	    "It is hoped that a joint venture can be established within this year. The Chinese side expects that the construction of an imported LNG receiving terminal will start in the latter half of 2002 and the operation start-up is by the end of 2005," the report said. 	    According to the project executive office, the terminal, with an annual handling capacity of 3 mln tonnes, will be situated in Shenzhen and the 400-kilometer gas grid will sprawl across the Pearl River Delta. The imported gas will first fuel households in Shenzhen, Foshan, Guangzhou and Dongguan and two gas-fired power plants in Shenzhen.	    The LNG terminal and pipeline project will cost around 5 bln yuan. The Chinese side will take up a majority share of 70 percent with the rest going to the foreign partner.	    The Chinese side comprises China National Offshore Oil Corporation, the Shenzhen Investment Holding Corporation, the Guangdong Electric Power Holding Company, the Guangzhou Gas Company, the Dongguan Fuel Industrial General Company and the Foshan Municipal Gas Management General Company, Xinhua said. 

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