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China National Offshore Oil Corporation (CNOOC) will import 25 million tons of liquefied natural gas (LNG) annually by 2010, said a senior executive with CNOOC Gas and Power Limited on Friday.

Liu Liming, Vice General Executive Manager with CNOOC Gas and Power Limited, said at the China Gas Summit that his company is still seeking partners to supply LNG for CNOOC's fourth LNG terminal in East China's Zhejiang Province.

"We have had talks with several possible partners including enterprises from Qatar and Indonesia," said Liu.

CNOOC Gas and Power Limited is a wholly owned company of CNOOC, the third largest oil producer of the country.

CNOOC's LNG terminal in Shenzhen of South China's Guangdong Province was put into production in June of this year. The terminal, supplied by natural gas from Australia, is also the first LNG terminal in China.

CNOOC has signed long-term LNG supply contracts with Indonesia for its terminal in Fujian Province which is under construction and with Petronas of Malaysia for the terminal in Shanghai.

Some of the LNG will be used for power generation, said Liu, adding that natural-gas fueled power generation could reach 9.16 million kilowatts by 2010.

CNOOC now has five natural gas power generation projects, in China's power-hungry regions in the east and in the south, that are designed to be fueled imported LNG projects or offshore natural gas fields.

China now have 23 natural gas power generation projects with a total installed capacity of 18.37 million kilowatts.

By 2020, natural gas generated electricity will account for 6.7 percent of the country's total, said Liu.

However, considering the high price of natural gas on the international market, China has decided to adopt a prudent strategy in developing natural gas power generation over the next five year.

Liu hopes the development of natural-gas power generation will continue in a proper and moderate way as it will promote the construction of infrastructure and accelerate the development of China's natural gas market, he said.

(For more biz stories, please visit Industry Updates)