CNOOC builds China's 1st LNG cold energy-use plant

BEIJING Oct 11 (Reuters) - China's top offshore oil producer China National Offshore Oil Corp (CNOOC) has started constructing China's first plant to use cold energy from liquefied natural gas (LNG), the company said.

The Fujian plant, a 300 million yuan ($40 million) joint venture between CNOOC's Oil Base Group Ltd and U.S. firm Air Products (APD.N), is expected to churn out more than 600 tonnes of liquid oxygen, nitrogen and other industrial gas products a day when it is operational in the first half of 2009, CNOOC said.

Cold energy released in LNG regasification can help to liquefy air and produce industrial gases such as oxygen and nitrogen.

The cold energy will be sourced from LNG imports at CNOOC's Fujian terminal, which plans to take in 2.6 million tonnes of LNG per year in its first phase, the company said in a posting on its Web site (www.cnooc.com.cn).

The first phase of the Fujian terminal is set to be operational in early 2009.

CNOOC, the parent of Hong Kong- and New York-listed CNOOC Ltd (0883.HK) (CEO.N), began importing LNG last year to feed China's first terminal in southern Guangdong.