China’s First LNG Import

Terminal
LNG 14 Doha,
Qatar
Chu Yanqun

LC (Buddy) Hicks

Lu Ningxian
24 th March 2004
China’s First LNG Import
Terminal

• Characteristics - Guangdong Province

• Pearl River Delta Energy Demand
• Shareholders
• Project Description
• Trunkline Route & Customers
• Commercial Arrangements
• Summary

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Guangdong Province

Guangzhou East Pearl River Delta

Population: 31m
Dongguan
Foshan • Total population c. 86
million (larger than the
UK)
Shenzhen • GDP approximately
West Pearl River Delta
Population: 8m
equal to:
Malaysia,
Hong Kong
Singapore
Hong Kong
Population: 7m Philippines
• GDP growth 7- 9% p.a.
Macau Macau
Population: 0.4m • 2003 GDP 13.6%
• Insufficient domestic
Pipeline Route $10 bln of GDP energy resources
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Guangdong Energy
Demand

Growth of Energy Mix

4.0%

1995

7.0%

2000

8.7%

2005

9.1%

2010

0 10 20 30 40 50 60 70 80 90 100
Million Tons Oil Equivalent

Coal Oil Hydro electric & nuclear LPG/Gas

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Pearl River Delta

PRD vs. Taiwan market (2001)

PRD Taiwan
Population (m) 46 23

GDP ($m) 272 286

GDP / capita ($) 5900 12500

GDP CAGR (2000-04) 9.0% 2.7%

Total primary energy

consumption (mtoe) 67 60

Gas demand in 2010 (bcm) 10 14

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Initial Gas Sales
LNG Demand at Plateau

28%
55%
GD LDCs
1.03 mtpa GD Power
2.05 mtpa

HK Users
0.63 mtpa

17%

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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

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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%
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Terminal & Trunkline
Project Description

• Phase 1 capacity 3.7 mtpa

• One single berth jetty
• Vaporisation Facilities
• 2 X 160,000 m 3 storage tanks
• 370 Km of pipelines
• c. $900m project and working capital

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Trunkline Route

Guangzhou 370 Kms

Nanha
i Donggua Send-out:
Foshan n
Huizhou
Guangdong

Zhujian Shenzhe Meishi • city gas

g n
Qianwan Dongb • power stations
u
Hong Kong Electric

Terminal Hong Kong & China

Offtake Station Hong Kong Gas
Phase 1 Pipeline

Submarine Pipeline

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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 m 3 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
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China’s 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.
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