BG Group will supply 3.6mtpa of liquefied natural gas (LNG) to China National Offshore Oil Corporation (CNOOC) under a new $40bn contract.
According to the 20-year contract, BG Group will supply China with LNG produced at the proposed Queensland Curtis LNG facility in Queensland, Australia.
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The facility, which is expected to come onstream by 2014, will be supplied with coal seam gas from the firm’s acreage in the Surat Basin.
CNOOC will also acquire 5% of BG’s coal-seam gas interests in the Surat Basin and hold a 10% stake in an LNG processing unit as part of the agreement.
China’s consumption of natural gas in 2010 is expected to reach 110 billion cubic metres, up more than 37% from 80 billion cubic metres only two years ago.
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By GlobalData
