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China to Invest 5.6 Bln Yuan for LNG Project

China's offshore oil giant and a local company will jointly invest 5.6 billion yuan (US$691 million) to build a liquefied natural gas project in Hainan, the country's southernmost province.

The deal was reached between China National Offshore Oil Corporation (CNOOC) and the Hainan Development Holding Co. which hold stakes of 65 percent and 35 percent, respectively, from the LNG project, according to the provincial source.

The first phase of the LNG project is expected to be completed by 2009, which will have production capacity of 2 million tons by 2012, and further to 3 million tons by 2015.

Theoretically, the LNG project is designed to meet gas needs by the island province for 25 years upon completion.

Presently, Hainan's annual demand for gas stands at 7.3 billion cubic meters, leaving annual gas shortage of 2.3 billion cubic meters, the provincial source said.

(Xinhua News Agency November 17, 2005)

CNOOC Eyes LNG Future
CNOOC Looks to LNG as Future
PetroChina Gets Nod to Build LNG Project
China to Become Promising LNG Market by 2020
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