Chinese independent GCL has struck a deal with Anglo-Dutch supermajor Shell to supply and market liquefied natural gas in eastern China’s Jiangsu province.

In a framework agreement, the two companies have decided to set up a joint venture in Jiangsu that will see Shell supply LNG to GCL-owned and operated terminals in the province.

No supply volumes or terms were disclosed in the initial agreement.

GCL has rolled out plans to build a number of LNG terminals in China, including two in the Jiangsu cities of Rudong and Binhai.

In Binhai, the company is investing 14.4 billion yuan ($2 billion) to build an LNG terminal and power utilities with a handling capacity of 3 million tonnes per annum.

In Rudong, GCL is working with local authorities to build a 4.5 billion yuan terminal with an LNG import handling capacity of 2.7 million tpa.

The Rudong project also involves building three LNG tanks.

GCL is also understood to be pursuing LNG terminal projects in Yantai in eastern China’s Shandong province and Maoming in southern China’s Guangdong province.

The Yantai terminal will seek LNG volumes from the Ethiopia-Djibouti gas project, where GCL is developing an LNG export terminal in three phases.

First gas is due to flow in 2021 at an initial rate of 3 million tpa of LNG, expanding to 6 million tpa in the second phase and 10 million tpa in the third stage.

LNG

Shell to supply LNG to eastern China