China to tap Aussie liquefied natural gas

Chevron has signed a preliminary agreement to supply liquefied natural gas from Australia to China National Petroleum Corp, the country's largest oil and gas producer, media reports said Thursday.

Under the agreement, China National Petroleum would also take a stake in a gas field supplying the Wheatstone liquefied natural gas plant in northwest Australia's Carnarvon Basin.

The Chevron and China National Petroleum accord "allows each company to leverage the other's considerable technology, operational expertise and processes to explore, appraise and develop strategic upstream projects around the world," according to local media.

Wheatstone is part of Chevron's $200 billion in planned liquefied natural gas developments and could produce as much as 25 million metric tons of natural gas a year.

Liquefied natural gas is considered a clean, safe and highly efficient energy, which discharges less pollution and is more cost efficient and easier to transport.

Calls to China National Petroleum went unanswered Thursday.

Chevron, the second largest US oil company after Exxon Mobil, is the largest holder of undeveloped gas resources in Australia.

Chevron announced in August further drilling success in the Carnarvon Basin, Australia's premier hydrocarbon basin, which contains an estimated 273 meters of net gas pay.

"The Wheatstone liquefied natural gas hub adds to our Australian portfolio …and progresses our long-term plans to build a leading natural gas business in Australia and the Asia- Pacific region," Jim Blackwell, president with Chevron Asia Pacific Exploration and Production said on the company's website.

"China and Australia will have more energy cooperation in the future," said Lin Boqiang, director of the Center for Energy Economic Research of China in Xiamen University, East China's Fujian Province.

Bloomberg and Reuters contributed to this story

Source: Global Times