An agreement was signed on 16 March between Sino Petroleum, Pacific Oil and Gas and Jiangsu provincial State Assets Management Company to build and operate a Jiangsu liquefied natural gas (LNG) station. Construction will be split into two phases. The first phase, costing Rmb6bn and with the capacity to handle 3.5m tons of LNG and produce 4.8bn cubic metres of natural gas, involves the construction of an artificial island, an LNG receiving station, a jetty and undersea pipelines. The station will be located in Rudong county, Nantong, occupying 0.3 sq km. There will be a special LNG terminal, capable of accommodating the world’s largest LNG vessels of up to 267,000 cubic metres. The second phase will handle 6.5m tons of LNG and produce 8.7bn cubic metres of natural gas.

Meanwhile, Dalian Port Co said it planned to establsih a Rmb2.6bn LNG terminal joint venture with PetroChina.Dalian Port said it would hold 20 per cent of the joint venture, with PetroChina holding 75 per cent and the remainder held by Dalian Construction Investment.