Sinopec and Zhejiang Energy to develop 3Mt/year LNG terminal

The project will include four tanks that can store 200,000 cubic metres of LNG each.

Chinese energy companies Sinopec Corporation and Zhejiang Energy have agreed to jointly develop the 3 Mt/year LNG regasification terminal project in Wenzhou (Zhejiang province, East China). The project will include four tanks able to store 200,000 cubic metres of LNG each, a 26-km long gas pipeline and a berth to dock tankers of 30,000 cubic metres to 266,000 cubic metres. Once built, it will be Sinopec's fourth LNG receiving terminal after similar-sized projects built in Qingdao, Beihai and Tianjin (China).

The first phase of the project is set for operation by the end of 2021 while the whole project is slated for completion by 2025. A new special purpose entity, Zhejiang Zheneng Wenzhou LNG, has been set up to run the operations. It will be 51% owned by Zhejiang Group, 41% by Sinopec and 8% by a local investment company. Zhejiang Energy is a provincial state-backed company involved in thermal power generation and gas distribution. In 2017, it distributed 8.7 bcm/year of natural gas, which is 83% of Zhejiang province requirements.

This article was originally published by Enerdata.