Suntien & Towngas Cooperate on Tangshan Terminal
According to a official statement on August 20, Suntien Green Energy, the holding company of Suntien Tangshan LNG receiving terminal project, had approved the Storage Tank Cooperation Contracts with Towngas’s Tangshan Haohua on the 2# and 6# 200,000 cubic meter tanks of the project. Caofeidian Suntien LNG will be responsible for the preliminary application procedures of the Target Storage Tanks, the construction management, as well as the operation and management after completion; while Tangshan Haohua will make capital contribution to the construction of the storage tanks, totaling 2.2 billion RMB and it will in turn be entitled to the rights of possession, use and income and the contractual right of disposal under the Storage Tank Capital Contribution Contract.
Caofeidian Suntien LNG’s LNG receiving terminal project in North China's Tangshan City was approved by NDRC on October 29, 2019. The terminal is designed with a total receiving capacity at 14 Mtpa. For the first phase, Suntien planned to build one berth, four 200,000 cbm tanks and matched 80 mcm/d regasification train and 2 Mtpa truck loading facilities, and the construction is expected to start within 2019 and operate in 2021. According to the project plan, the second phase will add eight 200,000 cbm tanks, the second berth, and the second 80 mcm/d regasification train. The second phase is expected to operate in 2023 with a total regasification capacity at 160 mcm/d. The third phase is designed with eight extra 200,000 cbm tanks to further push the receiving capacity to max 17 Mtpa by 2025.
As for Suntien, the cooperation with Towngas will greatly help to reduce the investment pressure without losing any of the stakes, while upon the completion of the terminal, the running of the two tanks will also make profits from Towngas’s operation. As for Towngas, the two tanks will give not only a direct LNG import channel but also the extra storage capacity to meet the state’s storage mandate at 5% for city gas companies. Therefore, this new cooperation pattern is considered a win-win for both parties.
