China National Offshore Oil Corporation (CNOOC) has commenced the first phase construction of its Zhuhai LNG terminal project.

LNG receiving wharf, LNG station, a 291km long pipeline and three storage tanks, involving total investment of RMB11.3bn ($0.19bn) are included in the the LNG receiving terminal, Xinhua-run China Securities Journal quoted company source as saying.

The project is designed with an annual LNG handling capacity of 3.5 billion metric tons (tonnes) for the first phase development, while the capacity will be expanded to some 12 million metric tons in the future.

The project was approved by the National Development and Reform Commission (NDRC) in March 2010.

CNOOC Gas & Power Group, a wholly-owned subsidiary of CNOOC, holds 30% stakes in a joint venture Guangdong Zhuhai Jinwan LNG.