China liquefied natural gas(LNG) deal in the works
Malaysia is still in the running for a liquefied natural gas (LNG) supply contract with Shanghai, according to Deputy Prime Minister Datuk Seri Najib Tun Razak.
Najib, who was replying to a question from the floor after opening the Malaysia China Economic Conference 2006 here, said energy security was very important to China and that Malaysia would be in the position to provide it.
The question posed was whether the Government would support flagship projects between Malaysia and China to boost economic relations.
“This project would be an example of an iconic project. We already lost one to Australia in the bid to supply LNG to Guangdong,” Najib said.
“The Government is hoping that China will decide soon. We can supply energy to Shanghai,” Najib added.
According to recent news reports, the Chinese government, through the National Development and Reform Commission, is considering approving a 25-year supply agreement for LNG with Petronas.
The reports said the agreement would see Petronas supply the Shanghai LNG terminal at a contract price of US$5-US$6 (RM18-RM22) per million British thermal units when the terminal opens in 2008.
Designed to receive six million tonnes of LNG annually, China’s third LNG terminal in Shanghai is being built in two phases.
The first phase will be completed in 2008 when it will be able to process three million tonnes of LNG and supply four billion cubic metres of natural gas annually to the Shanghai municipality.
Najib added that the Government would also fully support private initiatives to develop joint marketing companies between China and Malaysia to market goods from both countries in the global market.
Earlier, in his keynote address, Najib said relations between the two countries would be improved further; and the recent multiple-entry visa for Chinese nationals was a clear indication that the Chinese were truly welcome.
“Bilateral trade between Malaysia and China has expanded by 21 times between 1990 and 2004. In 2005 alone, bilateral trade was worth US$23bil (RM84.4bil),” he said.
Najib, who was replying to a question from the floor after opening the Malaysia China Economic Conference 2006 here, said energy security was very important to China and that Malaysia would be in the position to provide it.
The question posed was whether the Government would support flagship projects between Malaysia and China to boost economic relations.
“This project would be an example of an iconic project. We already lost one to Australia in the bid to supply LNG to Guangdong,” Najib said.
“The Government is hoping that China will decide soon. We can supply energy to Shanghai,” Najib added.
According to recent news reports, the Chinese government, through the National Development and Reform Commission, is considering approving a 25-year supply agreement for LNG with Petronas.
The reports said the agreement would see Petronas supply the Shanghai LNG terminal at a contract price of US$5-US$6 (RM18-RM22) per million British thermal units when the terminal opens in 2008.
Designed to receive six million tonnes of LNG annually, China’s third LNG terminal in Shanghai is being built in two phases.
The first phase will be completed in 2008 when it will be able to process three million tonnes of LNG and supply four billion cubic metres of natural gas annually to the Shanghai municipality.
Najib added that the Government would also fully support private initiatives to develop joint marketing companies between China and Malaysia to market goods from both countries in the global market.
Earlier, in his keynote address, Najib said relations between the two countries would be improved further; and the recent multiple-entry visa for Chinese nationals was a clear indication that the Chinese were truly welcome.
“Bilateral trade between Malaysia and China has expanded by 21 times between 1990 and 2004. In 2005 alone, bilateral trade was worth US$23bil (RM84.4bil),” he said.
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