China fuels LNG sector

Oil-receiving terminal at Zhoushan port. Credit: TPG via ZUMA Press/PA Images

China is to have two more LNG receiving terminals as the country plans to go all out for clean energy. Firstly, Zhejiang Energy and Shenzhen Energy Gas Investment Holdings will jointly develop a facility in Zhoushan port in Zhejiang province.

The facility will be built in Zhoushan’s sub-port of Liuheng. Zhejiang Energy, which is owned by Zhejiang’s provincial government, the publicly listed Shenzhen Energy and Liuheng’s municipal authorities will establish a joint venture to manage the facility. The terminal will be located on the south of Liuheng island and will be connected to Zhejiang Energy’s pipeline on the mainland.

In the first phase of the project, a berth capable of accommodating a conventional 266,000 m3, an LNG bunkering terminal and three LNG storage tanks that each have capacity of 200,000 m3, will be built. The terminal is expected to process 3 million tonnes of LNG annually and this could go up to 6 million tonnes when the second phase is constructed.

Separately, publicly listed Chinese energy distributor Guanghui Energy said on 15 May that it will build an LNG receiving terminal in Yueyang port, which is along the Yangtze River in Hunan province, after winning approval from Hunan Provincial Development and Reform Commission. Located in Junshan port area of Yueyang port, the facility will include two 8,000 m3 LNG discharge berths, one berth for a work boat, one 50,000 m3 LNG storage tank and related facilities.

Guanghui Energy and Yueyang Junshan City Construction Investment, which is owned by Junshan’s municipal government, will form a joint venture, Yueyang LNG, to manage the facility.

The first phase of the Yueyang LNG terminal, which will have a receiving capacity of 10,000 tonnes, will provide LNG refueling and bunkering, and support Guanghui Energy’s existing LNG receiving station in Qidong in Jiangsu province.

The project will cost a total of CNY1.01 billion (USD147 million), of which CNY304.16 million, or 30% , will be funded by Yueyang Junshan City Construction Investment and Guanghui Energy. Yueyang Junshan City Construction Investment’s share will be 65% while Guanghui Energy takes the other 35%. The other CNY709.7 million will be funded by a loan taken by Yueyang LNG