Henan to Purchase LNG Cargo Exclusive for Storage Mandate
On August 28, LNGC KINISIS arrived at CNOOC Tianjin Terminal after 19,600 kilometers marine transportation from Angola. This cargo is a collaborated purchase between CNOOC Gas & Power and Henan Province’s natural gas operator, Henan Natural Gas Storage & Transportation, exclusive for six LNG storage stations in Henan to meet the storage mandate for city gas companies at 5% of annual sales and local government at 3-day emergency storage.
Over 40,000 metric tons of LNG will be split and delivered to six regional LNG emergency storage stations to provide peak-shaving capacity to 1 million households and 100 million population of Henan during the upcoming winter heating season. The successful operation adds a new sourcing direction of China’s inland provinces and is expected to be a great guiding significance to China’s city gas companies to replace local truck loading purchase to grouped international cargo sourcing.
Henan Natural Gas Storage & Transportation Co., Ltd. is the franchised provincial natural gas operator, established in August 2018 under the provincial strategy “Henan Gasification”. The company is comprised by Henan Province Investment Group (35%), CNOOC Gas & Power (30%), Henan Energy & Chemical Industry Group (16%) and Chinagas Hongda Energy Trading (19%). The company is nominated to coordinate the storage system of 472 mcm natural gas in Henan Province, including 6 LNG emergency storage stations (Zhongmu, Xin’an, Boai, Zhoukou, Queshan, Tanghe), renting capacity from two underground natural gas storage facilities and the cooperated project with CNOOC, CNOOC Binhai LNG Terminal, located in Jiangsu’s Yancheng City.
