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Setting up an LNG industry bridge between Australia and China

By Yuan Shenggao | China Daily | Updated: 2022-12-21 08:55
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A ship unloads liquefied natural gas transported to China at Dapeng Bay in Guangdong province. [Photo to China Daily]

CNOOC NWS Private Ltd has played an active and unique role in promoting communication and cooperation between Australia and China in the liquefied natural gas industry and contributing to local communities and job opportunities in Australia.

CNOOC NWS is a subsidiary of China National Offshore Oil Corp, which is one of the largest producers of offshore crude oil and natural gas in China and one of the largest independent oil and gas exploration and production companies in the world. CNOOC NWS manages CNOOC's assets in the North West Shelf LNG Project in Australia.

Boosting LNG industry

CNOOC NWS and six other participants have been the shareholders of the underground resources of the NWS LNG project since 2004 when China LNG Joint Venture was set up to provide LNG to China's Guangdong Dapeng LNG Co Ltd under the 25-year LNG long-term supply agreement. The agreement secured about 90 million metric tons of LNG.

In 2006, the NWS LNG project began to supply LNG to Dapeng's terminal, transporting the first LNG cargo to the Chinese mainland.

Over the past decades, more than 60 million tons of LNG has been delivered to China from the NWS LNG project, which has contributed not only to China's green energy supply but also Australia's economic growth.

As the first LNG project contracted and supplied between Australia and China, the NWS LNG project has set up the bridge between Australia and China in the LNG industry.

Within 2021, Australia's LNG exports to China reached a new record of nearly 32 million tons, developed China's LNG markets, and contributed considerable benefits to the Australian economy.

Strengthening ties

Since setting up the bridge between Australia and China in 2004, CNOOC NWS has played an active role in the operation and management of the NWS LNG project and in facilitating dialogue and knowledge sharing between Australia and China in the LNG industry

and offshore oil and gas operations. In 2003, the Australia-China Natural Gas Technology Partnership Fund was established, which aims to encourage cooperation in the energy sector between the two countries. The fund was backed by the Chinese government, Australian Federal Government, Western Australian State Government, and North West Shelf participants.

Over the decades since the inception of the fund, CNOOC NWS, as one of the participants of the NWS LNG project, has assisted in the operation of the fund's training programs and the visits to Australia and China by delegates from the two countries and promoted LNG business development between the two countries.

Encouraged by the contributions, all the parties have strong intentions to extend the fund program duration to approximately 2031 and the program will steadily and sustainably strengthen the bilateral relationship between the two countries.

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