LNG deal

Sinopec is also in talks to buy liquefied natural gas (LNG) from Exxon Mobil Corp's project in Papua New Guinea, Wang Tianpu, president of the company said on Friday.

The company plans to buy 2 million tons of the fuel a year from the project, he said.

The company has yet to sign a final agreement with Exxon Mobile and the accord will require government approval, said Wang.

China is building more than 10 LNG terminals on its eastern coast to meet a target of doubling the use of the clean fuel. China National Offshore Oil Corp earlier signed an agreement with British natural gas producer BG Group to buy gas from the latter's LNG project in Australia.

The agreement calls for CNOOC to purchase 3.6 million tons per annum of LNG for a period of 20 years from the Queensland Curtis LNG project in Australia, which is being developed by the BG Group. The project will come on line in 2014 with 7.4 million tons per annum in total capacity, CNOOC said in a statement.

China has set a target of raising the proportion of natural gas in its total energy consumption to 5.3 percent in 2010 from 2.8 percent in 2005, amid efforts to curb pollution.

The country's natural gas production will reach 120 billion cu m in 2011, under a three-year plan chalked out by the National Energy Administration.

(China Daily May 23, 2009)