Sinopec to Build $2.8 Billion LNG Terminal in Eastern China

BEIJING/SINGAPORE (Reuters) — Sinopec has signed an investment contract with the government of Zhoushan city in China to build a 20 billion yuan ($2.79 billion) liquefied natural gas (LNG) terminal, the Zhejiang provincial government announced on Thursday. 

The project, which will be jointly constructed and operated with a local government-backed company, will have annual LNG receiving capacity of 15 million tonnes and become the third LNG terminal in the eastern Chinese port city.

The first phase will include two wharfs, four gas storage tankers each with capacity of 220,000 cubic meters and ancillary facilities which will be able to transfer 7 million tonnes of gas per year.

Construction is expected to begin in the first half of 2021 and operations to start in 2024, the government statement said.

Sinopec did not immediately response to Reuters’ request for comment.

Zhoushan city currently has one LNG terminal owned by ENN Energy Holding, which has an LNG processing capacity of 3 million tonnes per year and will be expanded to 5 million tonnes in the first half of 2021. 

Zhejiang Energy Group, together with local government and Shenzhen Energy Gas Investing Holding, are building a 12 million tonne LNG terminal in Zhoushan.

Zhejiang Energy is expected to launch the project’s first phase, with an annual receiving capacity of 6 million tonnes, in 2023.

Sinopec currently operates three LNG terminals in Tianjin, Qingdao and Beihai.

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