PetroChina Co Ltd, China's largest oil producer, has started construction on a liquefied natural gas project in Caofeidian, Tangshan City of Hebei Province, the official Xinhua News Agency reported.
The LNG project will be funded by PetroChina and the government of Beijing and Hebei Province, which will invest a total of RMB 10 billion, according to the report.
The project, which will mainly receive gas from Australia and Qatar, will comprise a LNG terminal, an unloading wharf and gas pipelines.
The first phase of the project, which is expected to start operation by the end of 2013, is designed to be able to handle 3.5 million metric tons of LNG and supply 4.8 billion cubic meters of natural gas.
The second phase of the project is designed to have an initial capacity of 6.5 million metric tons, and will have 10 million metric tons finally.
PetroChina said earlier that its net profit jumped 35% year on year to RMB 139.99 billion in 2010, boosted by rising oil prices.
