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Jiangyin terminal planned

PetroChina is planning to build a new liquefied natural gas bunkering terminal in Jiangyin in eastern China’s Jiangsu province as a wave of expansion continues in the Chinese LNG sector, writes Xu Yihe.

PetroChina said it has signed a strategic investment agreement for co-operation on natural gas projects with local authorities in Jiangyin.

According to the agreement, PetroChina will invest 3.5 billion yuan (US$515 million) to build a terminal for LNG bunkering and distribution in line with the government's policy of extending LNG supply to inner river regions.

The investment will also go to building logistic facilities for LNG supply via trucking, LNG refilling stations and a coal-to-LNG conversion project.

The agreement commits China's state-owned PetroChina to complete the project in five years.

It will be the second transit LNG terminal in the city where gas player Sinoenergy is expected to next year complete a 2 million tpa facility.

Located in the Yangtze River delta region with no access to open sea, Jiangyin is one of the locations where the Ministry of Transport plans to build LNG receiving facilities along the inner rivers such as the Yangtze to connect to sea-linked terminals.

Along the Yangtze River, 45 such transit terminals will be built, according to a decree issued in late July by the Ministry of Transport.

Along the Beijing-Hangzhou canal, another 19 such terminals are planned.

Sources said that PetroChina could debulk LNG imports via its Rudong LNG terminal in the same province for redistribution from Jiangyin.

Meanwhile, PetroChina has decide to sell for $232 million 51% equity in its Tangshan city LNG terminal in northern China to sister company Kunlun Gas.

Sources said that the divestment is part of the plan for PetroChina to divide up its gas-based infrastructure, such as pipelines, ahead of the government's overall plan to establish a national gas infrastructure company.