30 March 2011 08:17 [Source: ICIS news]
GUANGZHOU (ICIS)--China’s Shantou Sailuo Energy is expected to start building a liquefied natural gas (LNG) receiving terminal at Shantou in the southern province of Guangdong later this year, a company source said on Wednesday.
The terminal, located on Shantou’s Nan’ao Island, will have a capacity of 1.2-3m tonnes/year at the first phase and will be expanded to 5m tonnes/year in the second phase of construction, the source said.
“[Shantou Sailuo] is waiting for final approval from the National Development and Reform Commission (NDRC) now and will start construction once the permission is granted,” he told ICIS in Mandarin.
LNG supply for the terminal will mainly come from Australia’s Icon Energy, he added.
On 29 March, Icon Energy signed a deal with Shantou Sailuo to supply at least 2m tonnes/year of LNG for 20 years starting no later than June 2016, Icon Energy said in a statement on Tuesday.
Prices of the LNG deal will benchmark Tapis crude oil in Singapore and will be reviewed every three years, the statement said.
China’s state-owned power company, Guodian, will build and operate the terminal jointly with Shantou Sailuo, but the source declined to give each party’s interests in the project.
Shantou Sailuo was established to service the growing energy needs of the eastern part of Guangdong. The privately owned company is based in Shantou.
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