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Deal signed for LNG terminal

PETROCHINA Co aims to start operating its first terminal for receiving liquefied natural gas in April 2011. It signed a deal with partners for the project on Thursday.

PetroChina will own 55 percent of the terminal, in Rudong, Jiangsu Province. Hong Kong-based Pacific Oil & Gas Ltd will take 35 percent and the Jiangsu government the remainder, according to PetroChina's parent company, China National Petroleum Corp.

China plans to build more than 10 such terminals along its coast to meet rising demand for the cleaner-burning fuel. For transportation by ship, natural gas is super-chilled to LNG, which is turned back into a gas at receiving terminals.

PetroChina, China's top oil and gas company, also plans to build terminals in Tangshan, in Hebei Province, and Dalian, in Liaoning Province.

PetroChina may sign an agreement with Exxon Mobil Corp this year to buy LNG from the Gorgon project in Western Australia, Chairman Jiang Jiemin reiterated yesterday.

PetroChina signed an agreement with Royal Dutch Shell Plc in November to buy 40 million tons of LNG from Gorgon and Shell's other LNG suppliers, following a deal in April in which PetroChina agreed to buy 3 million tons of the fuel from Shell's 30 percent-owned Qatargas 4 project, starting 2011.

The first phase of the Jiangsu project, costing 6 billion yuan (US$878 million), will be capable of handling 3.5 million tons of LNG from Qatar and other nations each year. Capacity will be expanded to 6.5 million tons in the second phase, CNPC said yesterday.


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