PetroChina forms joint venture for Tangshan LNG terminal

21 October 2011 10:30  [Source: ICIS news]

GUANGZHOU (ICIS)---PetroChina has signed an agreement with Hebei Natural Gas and Beijing Enterprises Group to construct and operate a liquefied natural gas (LNG) terminal at Tangshan in Hebei province, a source from Hebei Natural Gas said on Friday.

Under the agreement signed on 16 October, PetroChina will hold a 51% share in the joint venture, which will be called PetroChina Jingtang LNG, the source said.

Hebei Natural Gas and Beijing Enterprises Group will hold a 20% and 29% stake respectively, according to the source.

PetroChina is building the terminal, which is expected to come on stream in 2013 with an initial capacity of 3.5m tonnes/year. The eventual capacity at the terminal will reach 10m tonnes/year, the source said.

As PetroChina Jingtang LNG will primarily supply the LNG from the terminal to the domestic markets in Hebei and Beijing, the cooperation with local players is a good choice for PetroChina, market sources said.

In addition, the project includes the construction of an unloading terminal for docking a 80,000-270,000 cubic metres (cbm) carrier, a related re-gasification device and supporting facilities, the company source said.

The project will cost approximately yuan (CNY) 6.6bn ($1bn) to build, the source added.

($1 = CNY6.39)

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By: Fanny Zhang
+65 6780 4359

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