CHINA'S largest oil and gas producer and supplier was in Gladstone today to inspect their future investment in the burgeoning liquefied natural gas (LNG) industry.
China National Petroleum Corporation (CNPC) Chief Financial Officer and Chief Accountant Wang Guoliang visited Gladstone to see the proposed site of LNG Ltd’s LNG plant which CNCP now has a 19.9 per cent share interest in.
“CNPC own China Huanqiu Contracting and Engineering Corporation (HQCEC) and their interest is in the finance and construction of the Fisherman’s Landing project and CNPC are interested in being the off-taker via the LNG,” LNG Ltd CEO Maurice Brand told The Observer.
Last month, HQCEC bought 53,250,000 shares in LNG Ltd, equivalent to approximately 19.9 per cent of the total issued shares in the company.
It is expected the appointment of a HQCEC Director and CEO to the LNG Ltd board will allow LNG Ltd to access the global resources of HQCEC and the CNPC group which will assist the Company to progress its portfolio and target a number of new LNG opportunities.
"The move cements the company’s business model, our planning and our ability to recommence construction quickly,” Mr Brand said.
“Over the next few months we can concentrate on getting all the agreements together so we can restart the Fisherman’s Landing project as quickly as we possibly can.”
LNG ltd’s Fisherman’s Landing project lost its gas supply early last year after the loss of Arrow Energy which was taken over by Royal Dutch Shell/Petro China who also has plans to build a LNG plant on Curtis island off Gladstone.
In a case of “double dipping,” the new share holder of LNG ltd HQCEC is owned by CNPC, which is also PetroChina who are partners with Royal Dutch Shell in the Arrow LNG Curtis island project.
Mr Brand said the agreement between the two companies secures LNG Ltd’s future as a player within the LNG industry and what the company needs to do now is secure a gas buyer.
“What it effectively means is LNG ltd will receive funds in June as a result of this and the next stage for us is to work together on the Fisherman’s Landing project,” Mr Brand said.
“From everybody’s point of view we are still working very hard to make sure we can get a ship loaded with LNG out of here in 2014.”