China’s top economic planner, the National Development and Reform Commission (NDRC), is believed to be on the verge of endorsing China National Offshore Oil Corp.’s (CNOOC) plans to build an LNG import terminal in Yancheng City’s Binhai region.
Industry officials have said the company’s LNG arm, CNOOC Gas and Power, has already received approval from the Ministry of Communications to begin constructing offsite facilities.
The project will involve the construction of an LNG terminal, an onshore tank farm and export pipelines in Binhai, which lies in Jiangsu Province. The facility will have a first-phase import capacity of 3 million tpy, with four 160,000 cubic metre tanks and a jetty capable of handling 266,000 cubic metre LNG vessels.
CNOOC first proposed building the Binhai terminal in 2010 and was initially intending to use a floating storage and regasification unit (FSRU) for the project. It later backtracked over the use of an FSRU, deeming that such units do not make long-term strategic sense.
CNOOC Gas & Power – through CNOOC Yancheng New Energy – has already signed a contract with the Yancheng Economic & Information Technology Committee to build LNG bunkering facilities in Yancheng jointly.
Sources have said the bulk of the LNG will be piped to neighbouring Anhui Province via a planned 158-km line that will run between the terminal and Anhui’s Huainan City.
CNOOC Gas and Power has set up a joint venture with Huainan Mineral Resources Mining (HMRM) unit Clean Energy – called CNOOC Jiangsu Natural Gas – which will spearhead the terminal’s construction.
CNOOC and HMRM had previously intended to build an LNG import terminal in Anhui’s Wuhu City, though CNOOC eventually pulled out of the project for unknown reasons. Sources have said HMRM is still pursuing the Wuhu LNG project alone.