Qatargas delivered the first LNG cargo to China National Offshore Oil Corp’s (CNOOC) Zhuhai LNG terminal in the Guangdong province.

The cargo was loaded in a Q-Flex LNG vessel “Al-Gattara” and will be used to commission the latest addition to the growing list of LNG terminals CNOOC owns and operates across China. Qatargas and CNOOC have an existing sales and purchase agreement signed in 2008 for the supply of a total of 2mn tonnes per year (mtpa) of LNG. The first delivery of LNG from Qatar to China with CNOOC was made in October 2009.

Qatargas is the world’s largest LNG producing company with a production capacity of 42mn tpy. Qatar, as the world’s leading LNG producer, anticipates that China will become one of the world’s largest gas markets.

The Zhuhai LNG terminal will have a first phase receiving capacity of 3.5mn tpy adding to CNOOC’s other operating terminals in Guangdong, Shanghai, Fujian and Zhejiang provinces, thus maintaining its position as China’s largest LNG importer.

Qatargas chief executive officer Khalid Bin Khalifa al-Thani said, “This is an important milestone for Qatargas. We are very pleased that LNG from Qatar continues to contribute towards meeting the growing demand for energy in China. This achievement highlights Qatargas’ capability to supply LNG to customers around the globe safely and reliably. This delivery will further strengthen the relationship between both companies over the long-term.

“Under the guidance of HE the Minister of Energy and Industry Dr Mohamed Saleh al-Sada, also Qatargas chairman, Qatari LNG has a key role to play in contributing to countries around the world in improving their diversity of energy supplies. The commissioning of CNOOC’s Zhuhai LNG terminal will meet the growing demand for energy in China, and we at Qatargas are very proud to have played a contributing role.”

China faces possible supply shortages as the coldest months of December and January draw near, according to its top planning agency, the National Development and Reform Commission (NDRC). That may force China to import more spot LNG cargoes to meet peak demand.

It usually takes more than one cargo of super-cooled gas to fully commission an LNG import terminal, but the delivery of the first suggests it should be ready to boost China’s gas supply security before December.

The 3.5 mtpa Zhuhai plant is one of five new LNG import facilities that CNOOC expects to open by 2015, with another floating import facility expected online by the end this year.

(With inputs from Reuters)