China Gives Green Light to Massive LNG Project

Chinese state-owned Assets Supervision and Administration Commission revealed on July 18 that CNOOC’s Hainan 2 million tonne-per-year LNG project has finalized approval from the government.

The proposed project is to be constructed on the southern island province of Hainan and was granted approval from the National Development and Reform Commission.  The first phase of the LNG terminal is expected to be up and running in 2014, reaching a capacity of receiving 2 million tonnes of gas per year by 2016. 

The center at Hainan, when completed, will become China’s largest LNG storage and transferring hub, and will take an investment of 6.52 billion yuan for development.

CNOOC harnesses a 65% stake for the LNG project, while Hainan Development Holdings has the remaining 35%.