China National Offshore Oil Corp (CNOOC) has signed an agreement with a Taiwanese company to help promote liquefied natural gas (LNG) in Taiwan’s Kinmen county.
Shinfox Corp, a Foxlink Group subsidiary, confirmed that it had signed a framework agreement last week with CNOOC’s Fujian New Energy to collaborate and cooperate in developing LNG supplies in Kinmen.
Shinfox said it has agreed with Fujian New Energy to work to "promote supplies to small-scale LNG projects" in Kinmen, as part of efforts to mitigate pollution in the area.
The Taiwanese company explained that Kinmen is facing an energy shortage as economic development accelerates. The county has no domestic energy sources and has to import liquefied petroleum gas (LPG) from the main island of Taiwan. This deal will help secure a stable supply of gas to the area.
Taiwanese media reports claim that Fujian New Energy would ultimately provide up to 100 000 million tpa of LNG to Kinmen.
In April 2013, CNOOC signed an agreement to supply Taiwan's state-owned CPC with LNG spot cargoes, although there was no fixed timeframe or volumes tied to the deal.
Fujian New Energy
CNOOC has a 60% stake in Fujian New Energy while the Fujian Investment and Development Group has the remaining 40%. The joint venture is primarily tasked with LNG distribution in China's southern Fujian province via LNG trucks and small-scale LNG plants.
Edited from various sources by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/21012014/cnooc_to_supply_lng_to_taiwan_67/