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China LNG, Sinopec to develop small scale LNG

LNG Industry,

China LNG Group has entered into a framework agreement with Sinopec Fuel Oil Sales Corporation Limited (Shanghai) relating to cooperation in the development of LNG refuelling stations and the application of LNG heavy-duty trucks in the People’s Republic of China.

Chinese highways

Both China LNG and Sinopec intend to select two highways – Huhangyong Highway and Hangzhou Highway – as a pilot scheme for adding LNG refuelling facilities in existing gas stations along these major routes.

Following successful implementation of such stations, Sinopec will increase the number of LNG fuel stations based on the demand and development of the company’s LNG businesses.

The agreement

  1. Sinopec will communicate with relevant government departments for handling application procedures in relation to adding LNG refuelling facilities in existing gas stations.
  2. Sinopec will be responsible for the project design, construction, installation of equipment, testing and acceptance checks.
  3. Sinopec promises the LNG refuelling stations will be operational within 6 months of obtaining governmental approval.
  4. Sinopec will ensure the adequate supply of LNG; the company will also provide a preferential price to China LNG Group, once the consumption of LNG reaches a certain level.
  5. Sinopec will actively report to its head office in Beijing to assist China LNG Group in the development of its LNG businesses.
  6. China LNG Group is responsible for the aggressive expansion of the LNG vehicles market, provision of funding to its customers to convert their truck fleets to LNG, and the provision of finance leasing services for customers wishing to purchase new LNG heavy-duty trucks.

China LNG Group plans to directly and indirectly invest in no less than 100,000, and 200,000 LNG heavy-duty trucks, respectively, by the end of 2020.

Adapted from press release by Katie Woodward

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