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

China's ENN, Zhenhua Oil Ink LNG Supply Deals with ADNOC

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

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

Woodside Inks Long-Term LNG Supply Deal with China Resources

ADNOC Signs 15-Year LNG Supply Deal with Osaka Gas for Ruwais Project

Shell Predicts 60% Rise in LNG Demand by 2040 with Asia Leading the Way

Tokyo Gas Enters LNG Market in Philippines

Petronas Preps for Sabah-Sarawak Gas Pipeline Decom Op

China's CNOOC Aims for Record Oil and Gas Production in 2025

Yinson Production Scoops $1B Investment to Upscale FPSO Business

Current News

Indonesia's Medco Starts Production at Natuna Sea Fields

Indonesia Grants Approval to Kuwaiti Firm for Anambas Block in Natuna Sea

ADNOC’s XRG Partners Up with Petronas for Offshore Gas Block in Caspian Sea

Valeura Energy Greenlights Wassana Oil Field Redevelopment off Thailand

Scarborough FPU's Topsides and Hull Come Together in Major Engineering Feat (Video)

Shell-Reliance-ONGC JV Complete India’s First Offshore Decom Project

The Future of Long-Idle Drillships: Cold-Stacked or Dead-Stacked?

TMC Books Compressors Orders for FPSO and LNG Vessels

MODEC, Sumitomo Partner Up for Delivery of Gato do Mato FPSO

Chuditch Gas Field Up for Summer Drilling Ops as Sunda Reshapes Ownership Structure

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