Shell (China) Ltd. has signed medium- and long-term agreements with China Oil & Gas Pipeline Network Corp. (PipeChina) for use of the latter’s LNG terminals. Details regarding the timing and volume of the leases were not provided.
Shell last year signed two terminal-use agreements with PipeChina subsidiary PipeChina LNG Terminal Management. Included in the deal were the 4.2-million tonne/year (tpy) Yuedong LNG terminal and 3-million tpy Beihai LNG.
PipeChina formed in 2019 to consolidate operation of China’s LNG terminal and pipelines. PipeChina LNG operates seven terminals and is building three more, one each in Shandong (6.5-million tpy), Fujian (3-million tpy), and Shenzen.
Phase 1 of PipeChina’s Shandong Longkou terminal is expected to enter service in October 2023. Phase 2 would raise capacity to 12 million tpy. Shenzhen Diefubei is slated for 2025 startup.