Guardian Unlimited Special reports Thirsty China opens huge LNG terminal

China's growing thirst for energy is set to be partially quenched after the opening today of a giant terminal to receive liquefied natural gas from Australia under a record $19bn (£10.4bn) deal between the countries.
The Dapeng gas terminal in Shenzhen, the manufacturing heartland of southern China, is the first of more than a dozen similar facilities planned or under construction along the Chinese coast as the world's fastest-growing economy races to secure overseas power supplies.


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It is part of a transformation in the global economy as resource-rich nations compete to do business with Beijing. For Australia, the 25-year contract to supply the Dapeng terminal, which was signed in 2004, is the country's largest-ever trade deal and both sides expect more to follow.
"This occasion is a momentous one in the economic relationship between Australia and China," the Australian prime minister, John Howard, said in a speech at the opening ceremony. "Not only is this deal the biggest ever in Australia's history, it is in every sense a symbol of what can be achieved in the future between our two countries."
In a pattern that is being repeated from Africa to South America, business between the two nations has surged in the past few years. China is now Australia's second-largest trading partner with deals this year expected to pass the $30bn mark.
The $3.6bn Dapeng terminal - controlled by the state-run parent of CNOOC and indirectly invested in by BP - will supply southern China and Hong Kong with LNG supplies from Australia's North-West Shelf field.
China aims to more than double its use of gas by 2010 to reduce its dependence on dirty coal and expensive oil. The International Energy Agency forecasts China will spend $92bn on gas by 2030.
But the sharp rise in LNG prices has made it difficult for China to pin down supplies outside Australia. Beijing is still arguing with Indonesia over the cost of gas for a second terminal in Fujian province already under construction. If a deal is signed, the energy will be supplied by the BP-led Tanggu project in Indonesia.
The Chinese prime minister, Wen Jiabao, expressed hope that the opening of the Dapeng terminal would mark the start of a more stable energy relationship with Australia. "This symbolises the beginning of a long-term, stable demand and supply relationship between the two countries in the LNG field," he said.
"Australia and China want to strengthen our cooperation from energy, mining and resources cooperation to upstream exploration, new energy, renewable energy, clean energy and safe production."Special reportsChinaArchived articlesMore on ChinaWorld news guideChinaUseful linksChinese government gateway siteHuman rights in ChinaChina DailySouth China Morning PostChina Times