PetroChina set to start constructing LNG terminal

Eric Watkins
Senior Correspondent

LOS ANGELES, Mar. 24 -- China National Petroleum Co. subsidiary PetroChina has reported that it is ready to start building an LNG terminal on a recently completed manmade island consisting of 10.5 million cu m of rock in China's Yellow Sea off Rudong.

According to CNPC, the LNG import facility ultimately will consist of at least four terminals, with the first construction phase to include a 3.5 million tonne/year terminal, two 160,000 cu m storage tanks, and a jetty.

PetroChina said commercial operation is expected to start in first-quarter 2011.

Under the second construction phase, the terminal's capacity will be expanded to 6 million tonnes/year of LNG. CNPC did not provide cost details or when it plans to begin Phase 2 construction.

PetroChina Chairman Jiang Jiemin recently said his firm will build four more LNG terminals in the Chinese provinces of Liaoning, Hebei, Jiangsu, and Guangdong, and that it also plans to import 3-4 million tonnes/year of LNG from Qatar starting in 2011.

Contact Eric Watkins at hippalus@yahoo.com.

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