CERCG Looking to Ship LNG from Australia's West to East
Posted by Eric Haun
Sunday, December 10, 2017
State-owned China Energy Reserve and Chemicals Group (CERCG) on Monday said it is investigating whether to ship liquefied natural gas (LNG) from Western Australia to the gas-hungry east coast market.
The Chinese integrated energy firm, which runs oil and gas projects, processing plants and gas distribution, said in a press release to Reuters that subsidiary CERCG Australia is studying the viability of transporting LNG by road, rail and ship.
CERCG Australia's business manager Kevin Gao said the company would use LNG container tanks which can maintain liquefaction for 110 days.
"It should be possible for us to ship 100 or 200 of our 40-foot ISO containers, each containing 18 tonnes of LNG, from Australia's West Coast to customers on the East Coast," he said on Monday.
The Chinese government's integrated energy firm launched a A$463 million ($348 million) bid for Australian oil and gas producer AWE Ltd earlier in December, going directly to shareholders after the gas and oil producer rebuffed a slightly lower friendly approach.
AWE is evaluating the offer of A$0.73 a share, and has told shareholders to take no action.
The Chinese firm has previously said it is attracted to AWE for its 50 percent stake in the Waitsia gas field in Western Australia.
(Reporting by Alison Bevege)