Sinopec Signed Agreement about Longkou LNG Terminal

Sinopec Signed Agreement about Longkou LNG Terminal

January 12, 2019, the agreement signing ceremony of Sinopec Longkou LNG Terminal was held in Longkou Economic Development Zone, Yantai City.

Sinopec Longkou Terminal was established and operated via the cooperation of Sinopec, Longkou Government, Longkou Port Group and Hengtong Logistics. The operator name is Huaheng Logistics, a joint venture of Sinopec (owning 27% of the company) and Hengtong Logistics (owning 73% of the company). Participants will reform three present berths in Longkou Port into two LNG vessel berths and will build LNG receiving terminal and matched pipelines near the new LNG vessel berths. Phase I will start to be constructed in 2019, including a berth, the receiving terminal (with a receiving capacity of 6 mn mt/a), three 0.27 mn cbm LNG tanks and a gasification facility (with a capacity of 50 mn cbm/d), and will start operation in 2022. Phase II is planned to increase the receiving capacity to 20 mn mt/a. Sinopec Longkou Terminal will first fulfil the natural gas.

Sinopec Longkou Terminal is one of the terminals in the Ministry of Transportation’s 2022 Bohai Sea Coastal LNG Terminal Layout Scheme, a major projects supported by both the central government and the local authority. China is trying to use this and the other 5 projects (11 new berths) to increase the receiving capacity and peak-shaving ability in North China.