China Natural Gas Inc (CHNG) says it is close to completing tests on transporting liquid natural gas (LNG) shipments along the Yangtze River, reported China Oil and Gas Monitor. The move is designed to enable imported gas to bypass the current distribution bottleneck.

The Nasdaq-listed Chinese firm is a provider of pipeline natural gas for industrial, commercial and residential use and compressed natural gas for vehicular fuel in Xian, Shaanxi province. It has been carrying out tests on converting river vessels to handle bulk cargoes of LNG to be carried across inland China. It plans to run a converted vessel on the Yangtze in the second quarter of this year, said the company’s chairman, Qinan Ji.

No details on the size of the vessel or the volume to be carried were divulged. CHNG has been a distributor of natural gas and storage provider for several years but, until now, has focused on compressed natural gas delivered by road tankers and pipelines.

The LNG river transport test will be operated from Shanghai to Chongqing. If the test is successful, the firm says it will be authorised to build up to 30 LNG fuelling stations along the river and several LNG river transit terminals.