LNG

March 8 (LNGJ) - China National Offshore Oil Corp. (CNOOC), one of the largest Chinese LNG players, said it made a discovery at Kaiping South in deepwater of the eastern South China Sea, which adds over a 100 million tons of oil equivalent proved in-place volumes. “The well tested to produce an average of 7,680 barrels of crude oil and 0.52 million cubic feet of natural gas per day,” said CNOOC.

   “The discovery fully demonstrates the broad prospects for exploration in the deepwater South China Sea and further expands the resource base for the company's high-quality development,” explained Zhou Xinhuai, CNOOC Chief Executive and President. “In recent years, CNOOC has achieved remarkable breakthroughs in oil and gas exploration in the eastern South China Sea, building a new growth pole for offshore oil and gas production,” added Zhou.

TotalEnergies, the leading European oil and gas major, has joined with Shell, Brazilian state company Petrobras as well as two Chinese majors to start production from a second development phase of the Mero field offshore Brazil.

Leading LNG producer ExxonMobil Corp. is continuing apace with its oil and natural gas ventures and has made a final investment decision for the multi-billion-dollar Yellowtail development offshore the South American nation of Guyana after receiving government and regulatory approvals.

The leading Chinese LNG importer, China National Offshore Oil Corp., has expanded the planned storage capacity from six tanks to 10 tanks for the Yancheng-Binhai Port import terminal now under construction in the eastern province of Jiangsu.

CNOOC said that the cost of the first six tanks would be around 6.1 billion yuan ($953 million) and the Binhai venture would have two gas-fired power plants adjacent.

Phase one will have an annual receiving capacity of 3 million tonnes per annum and will be completed by 2022, including the first four 220,000 cubic metres full containment LNG tanks.

The Binhai facility includes one jetty to accommodate the largest carriers such as the Qatari Q-Max vessels at 266,000 cubic metres capacity.

Four more 220,000 cubic metres LNG tanks will then be built followed by the final two. The Binhai terminal will transfer natural gas to Jiangsu to increase gas availability for refining, industry and gas-fired power.

The full project is scheduled to come on line by the end of 2023 with the 10 tanks operating, including six ultra-large tanks, each with a total volume of 270,000 cubic metres.

“The Binhai LNG terminal in Jiangsu will have an annual LNG regasification capacity of 6 million tonnes a year, though will also have the largest LNG storage base in China with the 10 tanks,” explained Beijing-based CNOOC.

“The terminal’s construction will play a key role in the country’s natural gas supply, storage and gas marketing system,” stated CNOOC.

The company added that the Binhai LNG terminal project would also be an important asset in the industrial upgrade of the Yangtze River Economic Zone.

CNOOC has the largest regasification capacity of the Chinese majors with a presence in eight of the existing 22 import terminals, even after state-backed PipeChina bought and opened up several CNOOC-owned terminals to third-party access.

CNOOC also reportedly purchased almost a dozen additional LNG cargoes for delivery between July 2021 and March 2022 as demand in southern China is expected to remain strong as well as in the north and eastern industrial belt.

A second large LNG import terminal with mega-storage is also under development, the Tianjin Port Nangang project in northeast China.

First of all two tanks are being built followed by the second and third phases which will include building six additional storage tanks, each of 220,000 cubic metres capacity.

Gaztransport and Technigaz, the French technology and engineering company for LNG storage, has designing the tanks for the expanding Chinese import network and its accompanying system of gas-fired power plants and gas grid transmission lines.


The Tianjin Nangang terminal is being developed by the Beijing Gas Group and will be the third serving the northeast Chinese port supplying the gas needs of Beijing.

The existing facilities currently include the Tianjin North onshore terminal operated by China Petroleum and Chemical Corp. (Sinopec) and a separate floating terminal provided at peak times by Höegh LNG Holdings in the form of a floating storage and regasification unit on long-term charter to CNOOC.

China National Offshore Oil Corp., one of China’s main LNG importers, said its newly discovered Bozhong 13-2 oil and natural gas field in the Bohai Sea offshore northeast China could prove to be one of nation’s largest resource basins and will be subject to fast-track development.

China National Offshore Oil Corp., the owner of nine Chinese LNG import terminals and multiple oil and gas stakes, has outlined its business strategy and development plan for 2020 with 10 new projects scheduled to come on stream.