China's CNPC wins approval for LNG storage in Hainan
Top Chinese oil and gas producer China National Petroleum Corp (CNPC) has won approval for a liquefied natural gas (LNG) storage project on Hainan island, a report said, Reuters reports.
The 850 million yuan ($133.6 million) Shennan LNG storage project consists of 200,000 cubic metres of LNG storage tanks and a wharf with a receiving capacity of 10,000-20,000 cubic metres on LNG ships, the China Energy News reported on Monday.
The first phase of the project, with a storage capacity of 40,000 cubic metres, is expected to be put into operation in May 2013, it said.
The storage tanks will be used to receive LNG from CNPC's two operating terminals in Rudong and Dalian as well as planned terminals in Tangshan and Shenzhen.
CNPC, which operates its gas business via PetroChina and Kunlun Energy, last year started up its two LNG receiving terminals in Rudong and Dalian, with total annual capacity of 6.5 million tonnes.
CNPC has said it plans to step up LNG sales in the coming years, in line with a government push for cleaner energy.
It plans to sell 11.5 billion cubic metres or around 9 million tonnes of LNG to domestic users by the end of 2015 and aims to promote the use of LNG in at least 200,000 vehicles by the end of 2015.
Another major LNG project in Hainan is held by CNOOC Group, top Chinese liquefied natural gas receiving terminal developer. The company started to construct a 2.0 million tonne-per-year LNG terminal in the southern island province in November 2011.