CNOOC increases gas supply to Haikou

China's largest offshore oil/gas producer, CNOOC (NYSE:CEO) signed new gas supply contract with Hainan Minsheng Piped Gas Co., Ltd to increase gas supply to gas-thirsty Haikou, capital of Hainan province.

According to the new contract, CNOOC's Dongfang 1-1 gas field will increase gas supply to Haikou from 50,000 cubic meters to 150, 000 cubic meters per day as of August 1, 2007. Meanwhile, gas price is also raised to 0.95 yuan per cubic meter from 0.65 yuan per cubic meter.

Gas pipelines have covered 85 percent of the whole Haikou city. With some large industrial projects coming into operation this year, Dongfang 1-1, accounting for 70 percent of total gas supply in Haikou, with maximum supply once hitting 170,000 cubic meters per day.