China National Offshore Oil Corp. (CNOOC) intends to open three of its LNG terminals for third-party access (TPA), which represents a major step forward for independent players in China’s natural gas sector.
Industry officials said CNOOC had decided to allow shareholders of the Jinwan LNG terminal to handle their own LNG imports from the third quarter of this year. The 4 million tpy terminal is located in Zhuhai City in the southern province of Guangdong. CNOOC operates the Jinwan terminal with a 30% stake, while the remainder is held by seven local companies, mostly municipal town gas distributors.
This will be followed by the opening up of its Shenzhen Dapeng LNG, also in Guangdong, by the end of the year.
Sources said CNOOC had signed contracts with eight of the 6.7 million tpy Dapeng LNG terminal’s 10 shareholders to allow them to handle up to 1 million tonnes of LNG imports in the final quarter of the year, when peak winter demand will kick in.
CNOOC owns and operates four LNG terminals in Guangdong. In addition to Jinwan and Dapeng, CNOOC also operates the 3.5 million tpy Diefu LNG terminal in Shenzhen and the 2 million tpy Yuedong LNG terminal in Jieyang City.
Sources said CNOOC would also open its Diefu terminal to PetroChina at the end of this year, which will allow the latter to bundle gas into its West-East Pipeline (WEP) grid for supply to Hong Kong for power generation.
While CNOOC has been planning to open the Dapeng LNG terminal to TPA since 2009, only CNOOC Gas and Power and BP have imported cargoes via the facility.