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CNOOC’s gas and power unit said it has received approval from China’s National Development and Reform Commission for the country’s first FLNG project, which will be located in the port city of Tianjin.

According to  CNOOC, the first phase of the LNG project will cost about 3.3 billion yuan ($539 million).

The GDF SUEZ Cape Ann will serve the Tianjin project under a sub-charter between GDF SUEZ and CNOOC Gas & Power.

The vessel is expected to be permanently moored at Tianjin for a period of up to five years operating as an FSRU while at the same time maintaining full trading capability.

The unit will fulfill the same role as a land based terminal whilst providing a shorter timeline for the ability of receiving LNG into Tianjin and fuel growth of the whole region.