Guanghui and RUL Gallon Inked FWA on LNG Cooperation

SCI99

2019-12-11

Guanghui and RUL Gallon Inked FWA on LNG Cooperation

According to a recently issued statement from Guanghui Energy, the two pioneer private LNG companies, Guanghui Energy and RUL Gallon, inked the framework agreement together with financial coordinator Boyue Consulting, to build in-depth and complementary collaboration in LNG import and railway distribution.

Guanghui Energy agrees to open its Qidong Terminal to RUL Gallon, and RUL Gallon is capable to import LNG cargoes independently or cooperating with Guanghui Energy, but the window renting charge is still unsettled. In return, RUL Gallon agrees to open its rail logistics grid to Guanghui Energy, and both parties decide to build a 2-3 Mtpa LNG rail logistics hub beside Guanghui Qidong Terminal, so as to further expand the terminal’s LNG distribution capacity. The two parties also agree to cooperation on the rail distribution of Guanghui Energy’s Naomaohu LNG Project.

Guanghui Energy, as one of the major private LNG players in China, owns its 1.2 Mtpa Qidong Terminal in East China’s Jiangsu, and the terminal will be expanded to 3 Mtpa soon as expected in 2020’s first quarter with its two new 160,000 cbm tanks putting into operation. The company also owns a large batch of natural gas assets in Xinjiang and Central Asian countries, and its Naomaohu Project is designed to produce over 400,000 mt of LNG per year as well as 1.2 million tons of methanol and 0.8 million tons of DME.

RUL Gallon is a giant in railway logistics and distribution in energy sector, jointly ventured by China Railway United Logistics and Sinogallon Energy. The company is optimizing its LNG portfolio, whilst its new terminal located in North China’s Dongying port is still in early stage. The new terminal is designed with 3 Mtpa receiving capacity and six 160,000 cbm tanks, but the commissioning date is set to run in 2022 at the earliest. Therefore, the cooperation with Guanghui Energy is believed to strongly expand the LNG sourcing capacity of the company, especially when the company is aiming to build several LNG logistics hubs simultaneously.

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