China’s first privately owned LNG terminal
Chinas first privately owned LNG terminal has begun operation at Zhoushan Port signalling what is expected to become an increasing trend for private companies to set up their own terminals to make them less reliant on state supply.
The LNG tanker Stena Blue Sky unloaded its cargo at the Zhoushan LNG terminal, according to Thomson Reuters shiptracking data.
Operated by ENN Group, an independent Chinese gas distribution company, it is the first terminal to be set up as a privately-owned venture to help meet the growth of the LNG trade in the country.
Rising demand
This follows the Chinese government ordering millions of homes to switch to natural gas and electric heating from coal to counter rising air pollution.
It is the third LNG terminal to enter operation in China this year.
China Petroleum and Chemical Corp’s Tianjin LNG terminal entered operation in February and China National Offshore Oil Corp’s Shenzhen, Guangdong province LNG terminal opened in early August.
Both Sinopec and CNOOC are among the largest State- owned energy companies, along with China National Petroleum Corp.
Bloomberg Intelligence said insufficient domestic production and limited pipeline imports are contributing to the continuous growth in LNG imports.
Apparently, imports are likely to see average annual growth of 17% between 2017 to 2020 estimating China’s dependence on LNG imports to satisfy domestic gas demand will rise to 30% in the early 2020s.
China rose to be the world’s second largest importer of LNG in 2017 overtaking South Korea. Its imports totalled 38 million tonnes last year, 46% higher than the year before.
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