CNOOC to tap BG for gas needs

China National Offshore Oil Corp (CNOOC) yesterday said it had signed an agreement with British natural gas producer BG Group to buy gas from the latter's liquefied natural gas (LNG) project in Australia.

The agreement calls for CNOOC to purchase 3.6 million tons per annum of LNG for a period of 20 years from the Queensland Curtis LNG project in Australia, which is being developed by the BG Group. The project will come on line in 2014 with 7.4 million tons per annum in total capacity, CNOOC said in a statement yesterday.

The Beijing-based CNOOC will also own a 10 percent stake in one of the two LNG production trains at the planned LNG development, said the statement.