By AIBING GUO
Cnooc, Chinas biggest offshore oil and gas producer, is
considering constructing a liquefied natural gas plant and
export terminal in western Canada and possibly exporting the
fuel to China.
The plant may be built at Grassy Point near Prince Rupert in
British Columbia, Cnooc said in a statement Wednesday. Cnooc,
through its subsidiary Nexen Energy, signed an agreement to
access the land with the government of British Columbia.
LNG producers are exporting the fuel to Asia as consumers in
the region pay a premium to import the energy source. Japan
paid an average price of $15.74/MMBtu for LNG in July,
according to data from LNG Japan. That compares with an
average of about $3.68 for US natural gas futures traded in
New York this year.
LNG export is the most attractive option for maximizing
the value of our Canadian shale gas business, Li
Fanrong, CEO of Cnooc, said in the statement.
Cnooc and its state-owned parent China National Offshore Oil
Corp. have LNG facilities
in China including in
Guangdong, Shanghai, Fujian, Zhuhai and Ningbo, and plan to
build more to feed Chinas increasing appetite for the
The cost of the potential project