07 November 2013 08:10 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Guanghui Energy has signed a framework agreement with Anglo-Dutch energy giant Shell to jointly build and operate a liquefied natural gas (LNG) distribution and import terminal at Qidong in Jiangsu province, the Chinese partner announced on Thursday.
Under the agreement signed on 6 November, Shell and Guanghui Energy will set up a 51:49 joint venture for the project.
A distribution centre will initially be set up that will handle 600,000 tonnes/year of domestic LNG, Guanghui Energy said in a statement.
Once the terminal is developed, the handling capacity will be increased to 1.15m tonnes/year of domestic and imported LNG cargoes, it said, with a further plan to raise the throughput capacity to 3m tonnes/year, the company said.
No timetable was provided for each phase of the project as this will depend on when government approval can be secured, Guanghui Energy said.
The operator of the terminal will primarily import contract cargoes from Shell’s affiliates, with a volume of about 1m tonnes/year.
Financial details of the project were not disclosed.
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