CNOOC, BG Group Ink 20-Yr Natural Gas Deal
China National Offshore Oil Corporation (CNOOC) (NYSE: CEO, 0883.HK) has signed a 20-year contract to purchase liquefied natural gas (LNG) from British natural gas company BG Group (LON:BG) at a volume of 3.6MT per annum, the companies jointly announced March 24.
LNG supplied under the contract will be manufactured at a facility on Curtis Island, Australia that belongs to BG Group's wholly owned Australian subsidiary, QGC Pty Limited, and is expected to come onstream by 2014.
CNOOC and BG Group have cooperated on offshore exploration in China since 2006 and agreed to explore further opportunities for cooperation in 2008.
PetroChina (0857.HK, NYSE:PTR, 601857.SH) also recently acquired rights to a site for a proposed liquefied natural gas plant on Curtis Island, through a joint venture partially owned by PetroChina's subsidiary.
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