and transportation

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andtransportation

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Environmental Issues

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China and the Environment

China approved the Kyoto Protocol on 30 August Pollution levels:

Total Suspended ParticulatesParis – 14 Beijing – 377 Sydney – 54 Shanghai – 246 Kuala Lumpur – 85 Urumqi – 515 Bangkok – 223 Taiyuan – 568 Jakarta – 271 Lanzhou – 732

and it results in this:

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GD LNG – Project Background

Guangdong Province Population of over 75 million 10-15% growth per year for the last 10-15

years Contributes about 10% of China’s GDP Contributes about 38% of China’s total

exports

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GD LNG – Project Background

Project being developed in two phases Phase 1: Regasification terminal and 300km of

transmission pipeline in Guangdong and branch lines to Hong Kong

Phase 2: additional 2MMTPA volume and extension of trunkline around western side of Pearl River Delta

Imports scheduled to commence in 2005

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GD LNG – Project Background

Feasibility Study Report to be submitted to the SDPC later this year

If FSR approved, JV Company will be formed

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GD LNG – Project Background ownership

• CNOOC 33%

• Shenzhen Investment Holding 14%

• Guangdong Yuedian Power Assets 6%

• Guangzhou Gas 6%

• Dongguan Fuel Industrial 2.5%

• Foshan Municipal Gas 2.5%

• Hongkong Electric 3%

• Hong Kong & China Gas 3%

• BP 30%

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CNOOC33%

Guangdong31%

Hong Kong6%

BP30%

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GD LNG: Demand Side

Phase I: 11 customers (~3.28 MMTPA): HK Buyers (0.80 MMTPA)

HongKong Electric (6 x 300 MW)Hong Kong & China Gas

PRC power generators (1.62 MMTPA) Dongbu (3 x 350 MW)Huizhou (3 x 350 MW)Qianwan (3 x 350 MW)Meishi (Oil-to-Gas Conversion)

PRC towngas (0.86 MMTPA) Dongguan, Foshan, Guangzhou, Nanhai, Shenzhen

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GD LNG: Demand Side

Phase II Increased take by Phase I customers City gas customers on the east bank of the Pearl

River Deltae.g. Zhuhai, Zhongshan, Jiangmen and Heshan

Additional oil-to-gas conversion power plants

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GD LNG: Supply Side

Supplier is Australia LNG 25 year contract worth around US$13 billion 3 MMTPA from NWS 4th train

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GD LNG: Supply Side Australia LNG

BHPBilliton

BP

Chevron

MIMI

Shell

Woodside

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GD LNG: Supply Side

CNOOC Ltd will acquire equity interest in the NWS

Creation of China LNG Joint Venture Will own the LNG supplied to Guangdong, and

associated condensates and LPGs CNOOC Ltd offered 25% interest Price of around US$320 million plus tariff for

access to NWS infrastructure

China LNG

CNOOC LTD NWS Partners

China LNG JV

25% 75%

WoodsideShellMIMIChevronBPBHP

12½% each

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GDLNG: Shipping

2-3, 145,000 cu.m vessels Vessels to be owned:

COSCO & China Merchants40% NWS 39% Chinese owners 21%

Ship management company to be established: COSCO & China Merchants60% NWS 40%

GDLNG: Shipping Cosco

China Merchants

CCM JV Co Chinese Owners

NWS

Vessels

21%

Shipbuilders

Ship Management Co

Hudong Zhonghua

Chantiers de l'Atlantique

39%

40%

40%

60%

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GDLNG: Project Issues

• Land

• Consents

• LNG Supply and Shipping

• Downstream Gas Sales

• Construction

• Financing

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Future LNG Prospects

• Guangdong Phase II

• Fujian

• Zhejiang?

• Shanghai?

• Jiangsu?

• Shandong?

Thank You