GUANGDONG Dapeng LNG Co. is in the market for term supplies of liquefied natural gas (LNG) as well as spot cargoes as it adds regasification capacity to China’s only operational LNG terminal.

Talks are already underway with suppliers as it expands the regasification capacity at the terminal by around 20 percent to 8 million to 9 million metric tons a year by the middle of 2009, said Thomas King, the company’s president.

“We are looking for short-term, medium-term and long-term supplies,” King said, without disclosing the identities of potential suppliers.

The company is adding capacity to fulfill strong demand for the fuel in the densely populated Pearl River Delta region, which includes the cities of Guangzhou and Shenzhen.

China wants to increase the use of natural gas as part of efforts to reduce its dependence on dirty fuels such as crude oil and coal, which it blames for air pollution and a worsening environment.

LNG currently only meets around 2-3 percent of energy consumption in Guangdong.

“We believe that Guangdong is one of the best growth markets in the world for LNG,” King said.

Guangdong Dapeng LNG Co. is a joint venture whose shareholders include units of China National Offshore Oil Corp. and BP PLC, with stakes of 33 percent and 30 percent, respectively.

Other partners in Guangdong Dapeng LNG Co. include Shenzhen Gas Corp. Ltd., Guangzhou Gas Co. and Hong Kong & China Gas Investment Ltd.

The flagship Dapeng complex, which cost more than US$3.6 billion, was commissioned in May 2006 and began commercial operations four months later.

 (SD-Agencies)