Eric Watkins
Senior Correspondent
LOS ANGELES, Jan. 23 -- Shanghai LNG Co. Ltd. began construction Jan. 22 on Phase I of its LNG receiving and regasification terminal on Zhong Ximentang Island in China's Zhejiang province.
The terminal is expected to become operational in 2009, supplying 1.1 million tonnes/year of LNG in the first 3 years (OGJ Online, Nov. 27, 2006). Imports are expected to rise to 3 million tpy from 2012.
The $900 million Phase I construction will include three 165,000-ton concrete storage tanks as well as docking facilities that can receive ships of 80,000-200,000 cu m.
Phase II of the project is designed to increase LNG import capacity by another 3 million tpy, but no detailed timetable was given for the construction start.
A spokesman for China's National Development and Reform Commission said the Shanghai project, along with China's west-to-east natural gas pipeline and the East China Sea gas project, are expected to help meet Shanghai's energy demands, improve energy efficiency, and cut greenhouse emissions from coal use.
Contact Eric Watkins at [email protected].