State-owned oil and gas producer, CNPC, will develop a 850m yuan ($133.6m) facility in South China Island.
China National Petroleum Corp (CNPC) has won approval for the Shennan LNG storage project which, upon completion, will contain 200,000 cubic metres of LNG storage tanks as well as a wharf with a 10,000-20,000 cubic metres receiving capacity, on Hainan Island off the south coast of China. The first phase of the project is expected to come onstream in May 2013.
The tanks will receive LNG from the company's Rudong, Dalian, Tangshan and Shenzhen terminals, receiving a total annual capacity of around 6.5 million tonnes. CNPC, along with other majors such as CNOOC which started construction on a large terminal in Hainan last November, is keen to develop LNG projects in the coming years.
By the end of 2015, CNPC plans to sell around 11.5 billion cubic metres (around 9 million tonnes) of LNG to domestics users. It also plans to support Beijing's strategy of developing the alternative energy car market by promoting the use of LNG in at least 200,000 vehicles in the same time frame.