CNOOC, Taiwan to Cooperate in Gas Project

China will begin supplying LNG to Taiwan controlled island of Kinmen, according to China Post newspaper.

China National Offshore Oil Corp. (CNOOC) and the Shinfox Energy International Inc. will cooperate on this gas project. The announcement was made Thursday when the representatives from both parties met during the third Cross-Strait Entrepreneurs Summit in Nanjing.

Energy demand in Kinmen has increased in recent years, thanks to the booming tourism industry. Since the shortest distance between Kinmen and Fujian is only 2.8 kilometers, it will be convenient for CNOOC's facilities in Fujian to supply the LNG, the newspaper reported.

Under the joint venture cooperation framework, the CNOOC facilities in Fujian will also supply compressed natural gas, along with production technology.