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Petro皇冠体育app in deal to run 1st east 皇冠体育app LNG terminal

(Agencies)
Updated: 2009-03-16 15:49

Petro皇冠体育app has signed a deal to set up a joint venture to run its first liquefied natural gas (LNG) terminal in eastern 皇冠体育app scheduled to be operational at the end of April in 2011.

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The terminal would be mainly fed by fuel imports from Qatar, a report on the website of CNPC, Petro皇冠体育app's parent, said.

Qatargas, together with partner Royal Dutch Shell, agreed in April 2008 to sell 3 million tons of LNG a year to Petro皇冠体育app from 2011 for 25 years.

Petro皇冠体育app will take a 55 percent stake in the joint venture, while Hong Kong-based Pacific Oil and Gas Limited holds 35 percent and Jiangsu Guoxin Investment Group Limited, a local partner, owns the remaining 10 percent.

The first phase of the project, costing some 6 billion yuan ($877 million), would be able to handle 3.5 million tons of LNG a year or supply 4.8 billion cubic meters of gas per annum to users when it is ready.

The terminal could take in 6.5 million tons of LNG a year, or supply 8.7 billion cubic meters of gas after an expansion is completed, the report said.

The project, which is built on reclaimed land off 皇冠体育app's Yellow Sea, will help improve gas supply security in the Yangtze River delta, one of 皇冠体育app's key economic centers.

Petro皇冠体育app has also started building its first north 皇冠体育app LNG terminal in Dalian that is also scheduled to be operational in 2011.