BP Celebrates China LNG Double

28 June 2006, BP today joined its partners at a ceremony to mark the start of operations at China’s first liquefied natural gas (LNG) import and regasification terminal at Shengzhen, Guangdong province. An initial cargo of 57,000 tonnes of LNG was shipped to the partly BP-owned Guangdong Dapeng LNG import terminal at the end of May, one month ahead of schedule, from the North West Shelf Venture in Australia in which BP is also a partner. The second cargo, of 62,000 tonnes of LNG, arrived at the terminal prior to today’s ceremony.

Attending the ceremony at the terminal, Anne Quinn, BP’s group vice president gas and natural gas liquids, said: “The start of operations at China’s first LNG import project is an historic moment for China, Australia and all the partners involved in these two projects. As an active participant in China for more than 30 years, BP is delighted to have played its part and looks forward to pursuing other opportunities to bring low carbon energy to this important and rapidly growing market.”

Following an initial build-up period, the Dapeng terminal will receive 3.7 million tonnes of LNG each year under a 25 year contract agreed between Guangdong Dapeng LNG Company Limited and the North West Shelf Venture. Once re-gasified, the gas will be distributed by pipeline to customers in Guangdong province and Hong Kong.

Notes to editors:

* Guangdong Dapeng LNG Co., Ltd is a Sino-foreign joint venture with CNOOC Gas & Power Ltd. holding a 33 per cent equity share and wholly-owned subsidiaries of BP a 30 per cent share. Other shareholders include Shenzhen Gas Corporation, Guangdong Yudean Group, Guangzhou Gas Company, Shenzhen Energy Group, Dongguan Fuel Company, Foshan Gas Group, Hong Kong Electric (Natural Gas) Limited, and Hong Kong & China Gas Investment Limited.
* the engineering procurement and construction contract for the Guangdong LNG terminal was awarded to the STTS Group in April 2004. STTS is a consortium of Saipem, Technigaz, Tecnimont, and Sofregaz.
* the overall Guangdong LNG project is made up of 14 separate projects with total investment of over US$3.6 billion. These include four new build power plants, five local residential and commercial distribution networks in Shenzhen, Dongguan, Guangzhou, Foshan and Hong Kong, three LNG ships, one oil to gas power plant conversion and Guangdong Dapeng LNG Company’s terminal and trunkline projects.
* the North West Shelf Venture is owned equally by: Woodside Energy Ltd. (16.67 per cent and operator); BHP Billiton (North West Shelf) Pty Ltd (16.67 per cent); BP Developments Australia Pty Ltd (16.67 per cent); Chevron Australia Pty Ltd (16.67 per cent); Japan Australia LNG (MIMI) Pty Ltd (16.67 per cent); and Shell Development (Australia) Proprietary Limited (16.67 per cent).
* CNOOC NWS Private Limited is also a member of the North West Shelf Venture but does not have an interest in North West Shelf Venture infrastructure.

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