ENGIE and Shaanxi Houde Tongxing (HD) have signed an investment agreement in Yulin, Shaanxi Province, China.
The agreement will establish a joint venture (JV), which aims to build a large LNG industrial base in the North-West region of China. The JV will also develop LNG downstream activities.
The natural gas for the LNG industrial base will be provided by CNPC and Sinopec’s long-distance natural gas transport pipeline. The project construction is divided into two phases. The first phase, with a capacity of 0.25 million tpy of LNG, will start its commercial operation in July 2017. The second phase, with a capacity of 0.5 million tpy of LNG, will be in commercial operation in February 2018.
The total estimated investment for these two phases is approximately €200 million. In early 2016, the JV will also launch a study into the construction of an LNG storage centre in Yulin.
Jean Marc Guyot, the President and CEO of ENGIE China, said: “This is ENGIE’s first LNG Industrial base in Asia, we put high expectations in it and we look forward to working closely with a key Chinese partner and a key Chinese province of the gas industry. The signing of this contract underscores ENGIE’s ambition to pursue its development in China, namely by being a key player of the Chinese gas midstream, leveraging on the Group’s LNG sources, experience of gas infrastructures and energy services, and engineering know-how, and seizing opportunities in the growing China LNG market. Our vision is to offer sustainable solutions to China’s urbanisation and industry.”
Edited from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/regasification/10112015/engie-to-build-lng-industrial-base-in-china-1600/