Chinas First LNG Import Terminal

1
Chinas First LNG Import Terminal

• LNG 14 Doha, Qatar

Chu Yanqun LC (Buddy) Hicks Lu Ningxian
24th March 2004
2
Chinas First LNG Import Terminal

• Characteristics - Guangdong Province
• Pearl River Delta Energy Demand
• Shareholders
• Project Description
• Trunkline Route Customers
• Commercial Arrangements
• Summary

3
Guangdong Province
East Pearl River Delta Population 31m
Guangzhou
Dongguan

• Total population c. 86 million (larger than
  the UK)
• GDP approximately equal to
• Malaysia,
• Singapore
• Philippines
• GDP growth 7- 9 p.a.
• 2003 GDP 13.6
• Insufficient domestic energy resources

Foshan
Shenzhen
West Pearl River Delta Population 8m
Hong Kong
Hong Kong Population 7m
Macau
Macau Population 0.4m
4
Guangdong Energy Demand
Growth of Energy Mix
5
Pearl River Delta
PRD vs. Taiwan market (2001)
6
Initial Gas Sales
LNG Demand at Plateau
7
Initial Project Development

• 1995 CNOOC / Shenzhen studies
• 1999 SDPC Listing
• 2001 BP Selected as Foreign Partner
• Establishment of Joint Executive
  Office
• 2003 Feasibility Study Approved

8
JV Company
Guangdong Dapeng LNG Company
CNOOC 33 BP 30 Shenzhen Gas 10 Guangdong
Yudean 6 Guangzhou Gas 6 Shenzhen
Energy 4 Hong Kong Electric 3 Hong Kong
China Gas 3 Foshan Municipal Gas
2.5 Dongguan Fuel 2.5
9
Terminal Trunkline
Project Description
10
Trunkline Route

• 370 Kms
• Send-out
• Guangdong
• city gas
• power stations
• Hong Kong Electric
• Hong Kong China Gas

Guangzhou
Nanhai
Dongguan
Foshan
Huizhou
Shenzhen
Meishi
Zhujiang
Dongbu
Qianwan
Hong Kong
11
Commercial Arrangements
LNG Sale and Purchase Agreement Supply from
Australia NWS, 25 years, take-or-pay, 3.2 mtpa at
plateau, FOB Shipping 2-3 vessels, 145,000 m3
capacity, develop national LNG shipbuilding,
Sino-foreign JV JV Company 30 years, LNG
purchase, transportation, storage,
re-gasification and gas marketing Financing 70
debt, 30 equity, project finance, syndicate of
Chinese banks Gas Sales Contracts 25 years,
take-or-pay, back-to-back with LNG
purchase Terminal EPC Contract Saipem,
Technigaz, Tecnimont and Sofregaz consortium
selected as contractor, early works started in
June 2003 Trunkline FEED ongoing
12
Chinas First LNG Import Terminal

• First gas mid 2006
• Promotes clean energy and blue skies over
  Guangdong Hong Kong
• Leads the development of the Chinese LNG industry

Guangdong Dapeng LNG Company Ltd.