Exxon Executive: In Talks With PetroChina, CNOOC For Hong Kong Gas Supply
June 09 2009 - 2:17AM
Dow Jones News
Exxon Mobil Corp. (XOM) is working with Castle Peak Power Co.,
or Capco, to secure natural gas supply from the West-to-East
pipeline for Hong Kong, an executive from the U.S. major said
Tuesday.
The project is "running fine" and the Exxon and Capco are
"looking to buy through PetroChina and CNOOC," Wayne Harms, Vice
President, East Region, Exxon Mobil Upstream Ventures, said on the
sidelines of the Asia Oil and Gas Conference.
He added that agreements will be reached to meet a 2013-2014
target for a proposed terminal.
Harms said Exxon and Capco are not looking to source gas from
within Exxon Mobil.
Hong Kong utility CLP Holdings Ltd. (0002.HK) terminated
discussions with BG Group PLC (BG.LN) for liquefied natural gas
supply following a preliminary deal signed in mid-2008.
BG signed a MoU in June with CLP to supply 1 million metric tons
of LNG to a proposed Hong Kong terminal for up to 20 years, but CLP
scrapped the terminal plan three months later due to local
objections and eventually decided to invest in China instead.
CLP will jointly develop an LNG import terminal in Dachan Bay in
Shenzhen with state-owned PetroChina Co. (PTR) and city gas company
Shenzhen Gas.
Capco is a partnership between ExxonMobil Energy Ltd. (60%) and
CLP (40%).
-By Florence Tan, Dow Jones Newswires; 65-6415-4067;
florence.tan@dowjones.com