MELBOURNE�Woodside Petroleum Ltd., Perth, has solidified plans to take an interest in China�s LNG market with the recent establishment of a joint venture to tender for a $600 million LNG plant at Shenzhen in the southern province of Guandong.
Woodside, in partnership with Chevron Corp. and BHP Petroleum Pty. Ltd., has teamed up with Korea Gas Corp. (KOGAS) to tender for the LNG terminal project, paving the way for priority access to the Chinese LNG market. KOGAS has considerable experience in developing LNG facilities.
The proposed expansion of the North West Shelf project and the Northern Australian Gas Venture (Woodside holds majority interests in both projects) have the capacity to supply up to 10 million tonnes/year of LNG to China and other Asian countries.
The consortium also plans to develop gas distribution networks in the Shenzhen region as an aid to developing the gas market. Guandong also plans to use gas for electricity generation, replacing coal.
In other news, Woodside has reported first half revenues of $987.1 million (Aus.)�a figure that exceeds total revenue for 1999. The result has been boosted by an average $30/bbl (US) first-half oil price and significantly improved oil production, mainly from Laminaria field in the Timor Sea.
In the 6 months to June 30, Woodside produced 20.3 million bbl of crude and condensate, generating revenue of $658.8 million (Aus.). Last year, total condensate production was 4.4 million bbl, creating revenue of $106 million (Aus.).
The company�s earnings from the North West Shelf gas project were $307.5 million (Aus.)�up from $273.5 million (Aus.) for first half 1999. LPG production rose to 71,491 tonnes vs. 51,669 tonnes in first half 1999. And revenues from LPG were $20.8 million (Aus.) compared with $10.6 million (Aus.) a year earlier.