China will continue to support the development of liquefied natural gas (LNG) projects despite the rising price of natural gas on the world market.

The Chinese government encourages the use of natural gas but it can not reach agreements on the price of natural gas with potential suppliers.

Shanghai is seeking to develop LNG but was struggling to negotiate a deal with overseas suppliers.

The Energy Information Administration (EIA) of the U.S. predicted in August that the average Natural Gas Spot Price would be 7.69 U.S. dollars and 8.17 U.S. dollars in 2007.

The natural gas resources for another project under construction in East China's Fujian Province with a designed output of 2.6 million tons per year by 2007 will come from Indonesia.

China's first LNG project was built in South China's Guangdong Province and is supplied by an Australian company and 29.1 billion yuan had been invested in it.

The first boat of liquefied natural gas arrived in May and the project will be put into commercial operation on Sep 28.

Source:佚名