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BP wins contract
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CHINA has decided to select British Petroleum Company (BP) as the foreign partner for the country's first liquefied natural gas (LNG) project to be located in Shenzhen, the project executive office announced on Monday.
The company was invited to sign a co-operation principle agreement with the Chinese partners on the giant project before conducting joint feasibility studies. It is hoped that a joint venture can be established within this year.
The Chinese side expects that the construction of an imported LNG receiving terminal will start in the latter half of 2002 and the operation will commence by the end of 2005.
Foreign petroleum companies responded actively to the LNG terminal bidding starting in August 2000. Nearly 30 foreign firms, including famous giants such as Chevron, Exxon-Mobil, Shell and TOTAL, participated in the bidding.
According to the project executive office, the terminal, with an annual handling capacity of three million tonnes, will be situated in Shenzhen and the 400km gas grid will sprawl across the Pearl River Delta. Imported gas will first fuel households in Shenzhen, Foshan, Guangzhou and Dongguan cities and two gas-fired power plants in Shenzhen.
The terminal and pipeline project will cost around five billion yuan (US$600 million). The Chinese parties will take up a majority share of 70 per cent with the rest going to the foreign partner.
The Chinese side comprises of six Chinese firms including Shenzhen Investment Holding Corporation.(Xinhua)
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