CNOOC Fujian lets EPC contract for LNG site

Eric Watkins
Oil Diplomacy Editor

LOS ANGELES, Jan. 11 -- CNOOC Fujian LNG Co. Ltd. has let a contract to Chicago Bridge & Iron (CB&I) for engineering, procurement, and construction of two additional 160,000 cu m full-containment LNG storage tanks at CNOOC's LNG import terminal expansion in Fujian Province, China. The work is scheduled to be completed in 2011.

The award follows CB&I's completion of the first phase of the Fujian import terminal, which has two 160,000 cu m LNG storage tanks. The terminal received its first shipment of LNG in April 2008.

The 60,000-tonne spot shipment, from Egypt's Idku LNG plant, was supplied by BG Group, which owns 35.5% of train 1 and 38% of train 2 at the Idku liquefaction facility.

Since then, the 2.6 million tonnes/year Fujian terminal has been receiving spot cargoes while awaiting term supply from Indonesia's Tangguh LNG project.

Indonesia, in the wake of sharp increases in global oil prices, was seeking a price increase to $10/MMbtu for its Tangguh supplies.

Under the contract signed by China and Indonesia in 2002, the price of LNG from the Tangguh project was pegged at $2.40/MMbtu, regardless of any increases in crude oil prices.

China has already agreed to raise the price to $3.80/MMbtu, but Indonesia declined the offer and is seeking a new round of negotiations.

New LNG supplies sought
Meanwhile, a CNOOC Fujian LNG spokesman said the new tanks are part of a Phase II expansion at the terminal aimed at meeting future local demand and that the company is conducting a study on obtaining additional LNG supplies.

The Fujian terminal has commitments to supply regasified LNG to city gas companies in Fuzhou, Putian, Quanzhou, Xiamen, and Zhangzhou as well as three gas-fired power plants in Putian, Jinjiang, and Xiamen, which will account for more than 80% of consumption.

Expansion of the Fujian terminal also is part of the Chinese government's broader strategy to increase LNG's share of national energy consumption to 10% by 2015.

By 2020 about 25% of China's natural gas demand is forecast to be met through LNG imports, according to the US Energy Information Administration, which sees China's natural gas demand growing by 6.4%/year during 2010-20.

CNOOC Fujian LNG Co. Ltd. is a joint investment of China National Offshore Oil Corp. 60% and local firm Fujian Zhongmin Corp. 40%.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

TransCanada, LDCs reach deal on Energy East, Eastern Mainline projects

08/24/2015 TransCanada Corp. has reached an agreement with local distribution companies Gaz Metro Ltd. Partnership, Enbridge Gas Distribution Inc., and Union ...

Like Keystone XL, Energy East caught in a chokehold

08/24/2015

Another important pipeline finds itself in a chokehold.

US reportedly will begin limited crude oil swaps with Mexico

08/24/2015 The Obama administration will begin to allow limited US crude oil swaps with Mexico, multiple news organizations reported. The US Department of Com...

Pennsylvania's governor issues crude-by-rail study he commissioned

08/24/2015 Pennsylvania Gov. Tom Wolf (D) issued a study he commissioned in late April of issues stemming from the growing number of crude oil shipments by ra...

EPA proposes methane emissions requirements for oil, gas industry

08/24/2015 The US Environmental Protection Agency has proposed requirements aimed at reducing emissions of methane and volatile organic compounds (VOC) from a...

OGJ Newsletter

08/24/2015

International news for oil and gas professionals

Politics of abundance

08/24/2015 Attention returns to the antique US ban on exports of crude oil with reports that limited shipments to Mexico have been approved. The oil and gas i...

Statoil: Polarled gas pipeline crosses Arctic Circle

08/21/2015 The Statoil ASA-operated Polarled gas pipeline construction project reported crossing the Arctic Circle. The line will connect Aasta Hansteen field...

West Slope Colorado oil and gas group calls for pipeline route change

08/20/2015 The West Slope Colorado Oil & Gas Association urged the US Bureau of Land Management to move an existing natural gas pipeline, which its owner-...
White Papers

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by
Available Webcasts


The Resilient Oilfield in the Internet of Things World

When Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.

register:WEBCAST



On Demand

Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors

register:WEBCAST


Driving Growth and Efficiency with Deep Insights into Operational Data

Wed, Aug 19, 2015

Capitalizing on today’s momentum in Oil & Gas requires operational excellence based on a clear view of what your business data is telling you. Which is why nearly half* of oil and gas companies have deployed SAP HANA or have it on their roadmap.

Join SAP and Red Hat to learn more about using data to drive process improvements and identify new opportunities with the SAP HANA platform running on Red Hat Enterprise Linux. This webinar will also show how your choice of infrastructure impacts the performance of core business applications and your ability to achieve data-driven insights quickly and reliably.

*48% use SAP, http://go.sap.com/solution/industry/oil-gas.html

register:WEBCAST


OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected