July 30, 2018 [LNG World Shipping] - China Huadian and Guanghui Energy have agreed to build an LNG receiving and storage terminal in Yueyang city on the Yangtze River, 830 km inland from Shanghai and the East China Sea.
The Yueyang LNG terminal will be developed in three phases in a project that will cost a total of US$294M. The facility will have the ability to handle 0.5M tonnes per annum (mta) of LNG in the first construction phase, rising to 1 mta in the second phase and 2 mta in the third. The first phase is scheduled to commence operations in December 2020.
The installation will be constructed at Chenglingji, Yueyang’s port on the Yangtze, along a 1.2 km stretch of riverfront property. When complete the terminal will be provided with four 20,000 m3 storage tanks, two berths capable of handling LNG carriers of up to 10,000 m3 in capacity, three berths capable of loading LNG and a workboat berth.
LNG will be supplied to the Yueyang LNG terminal from Guanghui Energy’s other LNG receiving terminal, at Qidong City in the Yangtze River estuary 100 km north of Shanghai. The 0.6 mta Qidong terminal was opened in June 2017 and Guanghui Energy, an independent city gas distributor, is moving ahead with an expansion project that will boost the LNG-processing capacity of the facility to 3 mta by 2019.
China Huadian is the largest of China’s five major, state-owned power utilities. The company is making its own commitment to China’s goal of shifting towards electricity generation using low-carbon sources, by focusing increasingly on LNG and shale gas developments.
China Huadian has been lining up overseas supplies of natural gas through LNG sales contracts in recent years. It will purchase 1 mta of LNG from BP for 20 years commencing in 2020, for example, and has also agreed a deal with Chevron for a similar volume and start date, but over a 10-year period.
China Huadian had proposed the construction of two of its own LNG import terminals – a 6 mta facility in Guangdong province and a 3 mta installation in Jiangsu province. However, these projects are still at the planning stage and when the company’s LNG purchases commence in 2020, it will utilise existing Chinese import terminals as a third-party user.
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