10 September 2003 - Hong Kong-based Pacific Oil & Gas Limited announced Tuesday its first agreement in a series of major power investments planned for China. Through its subsidiary, East Asia Power Limited, Pacific Oil & Gas signed an agreement with the Government of Xiamen, Fujian, China to build, wholly own and operate a large-scale, state-of-the-art gas-fired combined cycle gas turbine (CCGT) power plant in Xiamen.
The power plant will have a total design capacity of 1400 MW. Phase one of the project will start with an initial capacity of 2 X 350 MW and an investment of $350m.
This investment represents a milestone for Pacific Oil & Gas as part of its continuing economic development between Indonesia and China. With China's continued strong economic growth and improving living standards, its power industry must now move quickly to service the rapidly increasing power demands in the country. Indonesia, rich in gas resources, will supply the liquefied natural gas (LNG) from its Tangguh, Indonesia gas field to fire Pacific Oil & Gas' wholly owned CCGT plant.
Mr Arthur Ling, President of Pacific Oil & Gas said, "The new CCGT power plant will supply the much needed power for Xiamen as well as Fujian province itself, to help ease the problem of power shortage in the area."
Pacific Oil & Gas is also developing other power plants in China that will utilize LNG from its first 5 million ton per year LNG plant in Indonesia. The LNG from this plant has been committed to other Chinese provinces which are also experiencing rapid economic growth and the associated demand for more power capacity.
Pacific Oil & Gas is focused on the development of integrated and cost-competitive energy supply chains which include upstream investments, LNG plants, transportation, receiving terminals, power generation plants and downstream gas transmission networks and facilities.