Guangdong Province, CNPC and CNOOC Sign Cooperation Agreement for Natural Gas

Guangdong Provincial Government, China National Petroleum Corporation (CNPC) (Beijing, China) and China National Offshore Oil Corporation (CNOOC), (Beijing, China) signed a framework agreement regarding cooperation on a natural gas project in Guangzhou, the capital city of Guangdong Province. The dignitaries that attended the contract signing ceremony included the Provincial Deputy Party Secretary General and Provincial Governor Huang Huahua, Standing Provincial Party Committee Member and Standing Deputy Provincial Governor Huang Longyun, CNOOC General Manager Fu Chengyu, CNOOC Deputy General Manager Wu Zhenfang, CNPC President Wang Tianpu and CNPC Senior Deputy President Wang Zhigang.

Governor Huang Huahua noted that natural gas is a source of clean energy. It is very important for Guangdong to develop its natural gas industry to safeguard the energy supply in Guangdong and to improve the standard of living for Guangdong residents. The framework agreement signed by CNPC, CNOOC and Guangdong Province will facilitate the three parties’ cooperation in the field of natural gas and fully tap the two oil companies’ advantage in industrial strength and the market potential in Guangdong. Guangdong Provincial Government will fully support the joint natural gas project for the benefit of healthy development of natural gas industry in the Province.

According to the framework agreement signed, the three parties will jointly establish Guangdong Natural Gas Pipeline Company. The Company will be formed by a Guangdong Provincial Government designated company, CNPC and CNOOC in accordance with the Company Law of PRC. The company will be responsible for the construction of key provincial level natural gas pipelines and the operation and management. The Provincial Government will formulate the strategic planning of the pipeline network. The company will carry out the investment and construction of the pipelines based on the plan from the province.