China’s largest offshore oil and gas producer China National Offshore Oil Corporation (CNOOC) signed a liquefied natural gas (LNG) agreement with energy company BG Group on May 12.
The project development agreement enables CNOOC to purchase LNG from BG’s Queensland Curtis LNG (QCLNG) project in Australia.
It is the latest example of activism by China’s state-owned energy companies as the country grapples with a surge in energy demand, growing dependence on energy imports, rising global energy prices, and periodic domestic energy shortages.
But although there is a strong desire in Beijing to become more self-sufficient when it comes to energy, more often than not China’s policy in this area is driven by these powerful, highly profitable, yet relatively autonomous players.
This can be partly explained by their level of influence in Beijing’s corridors of power, where they hold full and vice ministerial ranking and membership of...
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