China's first floating LNG project approved

CNOOC gets final approval for China's first floating LNG project - Platts | China National Offshore Oil Corp has received final government approval for its floating LNG project in China's eastern port city of Tianjin, the company said Wednesday. This will be China's first floating and regasification unit, with a total investment of Yuan 3.3 billion ($539 million) for the first phase, CNOOC said. The LNG import project received approval from the National Development and Reform Commission on July 26. The first phase of the project comprises a floating, storage and regasification unit, an accompanying berth and two 30,000 cubic meter storage tanks. It will have an LNG receiving capacity of 2.2 million mt/year, roughly equivalent to 3 billion cubic meters/year of natural gas, the company said. A second phase could see capacity expanded to at least 6 million mt/year, CNOOC said. It did not specify timelines for the commissioning or expansion. In April this year, CNOOC and France's GDF Suez formalized a 2011 agreement, under which GDF Suez will provide CNOOC with a floating vessel to receive LNG in Tianjin. GDF Suez's 145,000 cu m Cape Ann LNG regasification vessel will be sub-chartered by CNOOC from October this year for up to five years, the French company said then. GDF Suez also has a contract to deliver a total 2.6 million mt of LNG to CNOOC over 2013-2016. It is not clear if supplies have begun.