CNOOC signs Australian gas deal with BG

Beijing: China National Offshore Oil Corporation (CNOOC) this week announced that they had signed a Project Development Agreement (PDA) with BG Group for liquefied natural gas (LNG) from BG Group’s Queensland Curtis LNG Project in Australia (QCLNG).

The agreement calls for CNOOC to purchase 3.6 million tonnes per annum (mtpa) of LNG for a period of 20 years from start-up of QCLNG, which is being developed by QGC – a BG Group business. QCLNG will come on line in 2014 with 7.4 mtpa capacity of its two trains. CNOOC will also purchase a 5% interest in the reserves and resources of certain of BG Group’s tenements in the Queensland Walloons Fairway of Surat Basin, and participate in 10% of the equity in one QCLNG liquefaction train at the Gladstone plant in Queensland. BG Group and CNOOC will jointly participate in a shipping consortium formed to construct two LNG ships in China that will be owned by the consortium. CNOOC and BG Group intend to negotiate and execute fully-termed transaction agreements prior to BG Group’s final investment decision for QCLNG.

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