Sinopec, Zhejiang to Build LNG Terminal in China

Wednesday, August 22, 2018

China's Sinopec Corp has teamed with Zhejiang Energy Group Co Ltd on a 3 million tonne-per-year liquefied natural gas (LNG) terminal in east China, with the first phase set for operation at end-2021, the state oil giant said on Wednesday.

The project, to be built in Wenzhou of Zhejiang province, includes four tanks each able to store 200,000 cubic meters of LNG, a berth to dock tankers of 30,000 cubic meters to 266,000 cubic meters, as well as a 26-km (16-mile) pipeline.

The two companies launched on Monday new entity Zhejiang Zheneng Wenzhou LNG Co Ltd that is 51 percent owned by the Zhejiang group, 41 percent by Sinopec and 8 percent by a local investment firm, said a Sinopec press official.

This will be Sinopec's fourth LNG receiving terminal after similar-sized facilities built in Qingdao, Beihai and Tianjin. The state group is expanding its LNG receiving capacity rapidly under Beijing's push to replace coal with cleaner gas.

Zhejiang Energy Group, established in 2001, is a provincial government-backed entity engaged in thermal power generation and pipeline gas distribution, according to its website.

The group supplies 61 million tonnes of coal a year, nearly half of Zhejiang's consumption, and distributes 8.7 billion cubic meters of natural gas a year, meeting 83 percent of the province's need for gas.

The Wenzhou terminal puts the Zhejiang group into China's so-called "second-tier" of LNG players, which are local-government-backed city gas distributors that are emerging as new merchants in the global gas market.


(Reporting by Chen Aizhu; Editing by Tom Hogue)

Categories: Tankers Ports Finance Energy LNG

Related Stories

Second Hai Long Substation Heads to Project Site Offshore Taiwan

Sapura Energy Nets $720M from Multiple Drilling Services Contracts

Initial Drilling Results Raise Questions on South Korea’s Offshore Gas Viability

VIDEO: AIRCAT Crewliner takes Shape to Service Offshore for TotalEnergies Angola

Europe's Gas Uncertainty Help Drive Asian LNG Spot Prices Higher

Flare Gas Recovery Meets the Future

ABS Approves Hanwha Ocean’s FPSO Design

AI & Offshore Energy: The Higher the Stakes, the More Value AI Creates

Transocean’s Drillship to Stay in India Under New $111M Deal

Sunda Energy Closing in on Jack-Up Deal for Chuditch-2 Appraisal Well

Current News

Fire at Petronas Gas Pipeline in Malaysia Sends 63 to Hospital

Japan’s ENEOS Xplora, PVEP Ink Deal for Vietnam Offshore Block

CNOOC Makes Major Oil and Gas Discovery in South China Sea

Valeura’s Assets in Gulf of Thailand Remain Operational After Earthquake

Op-Ed: Kazakhstan’s National O&G Firm Positioning Itself as Global Energy Player

Woodside to Shed Some Trinidad and Tobago Assets for $206M

CNOOC Sees 11% Profit Growth in 2024 Driven by Record Oil Production

‘Ultra-Mega’ Offshore Deal for L&T at QatarEnergy LNG’s North Field Gas Scheme

Keel Laying for Wind Flyer Trimaran Crew Boat

MODEC Gets Shell’s Gato do Mato FPSO Ops and Maintenance Job

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com