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Royal Dutch Shell Plc .com: CHINA OPENS 1ST LNG TERMINAL, RECEIVES LNG FROM WEST AUSTRALIA

From Asia Pulse
Published: Jun 28, 2006

PERTH, June 28 Asia Pulse – China has commissioned its first liquefied natural gas (LNG) terminal, receiving LNG from Australia’s North West Shelf joint venture.

The North West Shelf joint venture, which is operated by Woodside Petroleum Ltd (ASX:WPL), is the first international supplier of LNG into China and joint venture president Peter Cleary said it was the beginning of a 25-year relationship.

“We would like to congratulate our Chinese customers on the safe and successful commissioning of their new LNG facilities in the Guangdong province,” he said in China today.

“We look forward to meeting their energy requirements through safe and reliable deliveries of LNG over the next 25 years.”

Mr Clearly was attending a ceremony to mark the commissioning of the receiving terminal along with Prime Minister John Howard, Chinese premier Wen Jiabao and Western Australian premier Alan Carpenter.

The first shipment bound for China left the port of Karratha in May, and the shipment to arrive today on the Northwest Swan left WA last week.

Mr Clearly said he was grateful to China for choosing the North West Shelf as its preferred energy supplier.

“There is growing international interest in future energy sources and supplies worldwide,” he said.

The supply deal, signed in October 2002, sees the project supplying more than 3.3 million tonnes of LNG a year for 25 years.

The project in Western Australia’s north-west is a joint venture between Woodside Energy, BHP Billiton (ASX:BHP), BP Developments Australia, Chevron Australia, Japan Australia and Shell Development.

Shares in Woodside dropped 48 cents to A$42.52 by 1209 AEST while BHP Billiton also pulled back 79 cents to A$27.31 in a broadly weaker market.

(AAP)

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