By OGJ editors
HOUSTON, Apr. 12 -- CNOOC Fujian LNG Co. Ltd. has awarded a $100 million contract to Chicago Bridge & Iron Co. (CB&I), The Woodlands, Tex., for the design and construction of storage tanks at China's second major LNG import terminal. It will be built at Xiuyu, in southeast China's Fujian Province.
The first LNG import terminal is to open in 2006, and the Xiuyu terminal is scheduled for completion in late 2007 (OGJ, June 14, 1004, p. 58).
In Phase I, the LNG regasification terminal will have a 2.6 million tonnes/year of capacity that will be expanded under Phase II, currently in the planning stage. Natural gas from the terminal will fuel gas-fired power plants, also to be built during Phase I, and service customers in five cities.
CB&I will perform turnkey engineering, procurement, and construction of two 160,000 cu m full-containment LNG storage tanks, including deep foundations, tank topsides, and electrical, instrumentation, equipment, and piping to grade. CB&I is working with Chinese design institute Chengda Engineering Corp. and other strategic local partners on the project.
When completed, the terminal will be supplied from Indonesia's Tangguh project. CNOOC Fujian has signed a framework agreement to begin importing Iranian LNG in 2008. CNOOC Fujian is a joint venture of China National Offshore Oil Corp. (CNOOC) and Fujian Investment & Development Corp.
CNOOC has forecast that Chinese gas demand will reach 160-210 bcm by 2010, of which 39% would be LNG. State-owned companies are considering at least eight other LNG terminals, and the government is expected to accelerate the approval process for them.
