SHENZHEN TO BECOME WORLD’S BIGGEST LNG HUB

With two additional terminals within the next three years, the Port of Shenzhen is expected to become the world’s-largest receiving station for liquefied natural gas, or LNG, according to a report posted on the Shanghai International Shipping Institute website.

According to the forecast, Shenzhen port’s total LNG throughput will grow to more than 20 million tons a year by 2020, due to imports at the existing Dapeng LNG Terminal managed by Guangdong Dapeng LNG Co. and China National Offshore Oil Corp. (CNOOC), as well as terminals being built nearby by CNOOC and PetroChina.

About 900 LNG carriers are expected to call at the port annually by 2020, the forecast said.

LNG shipments will climb substantially even though PetroChina last year scaled back its terminal construction project. The adjustment will reduce the completed terminal’s storage tank capacity by more than 16 percent.

Imports will include LNG derived from U.S.-produced shale gas. An LNG World News report said the Dapeng terminal recently received China’s first shipment of U.S.-produced LNG from the Sabine Pass liquefaction and export terminal in Louisiana.

Meanwhile, CNOOC’s 80 billion yuan, four-storage-tank Deifu LNG terminal will complement the Dapeng facility, which opened in 2006. CNOOC also operates LNG terminals near Shenzhen in the cities of Jieyang and Zhuhai, and in other Chinese ports.

LNG receiving terminals typically include complexes of storage tanks, berths and jetties with equipment to accommodate the offloading of seagoing LNG carriers.

The governments of Shenzhen and Guangdong Province have been promoting the use of natural gas for the region’s manufacturers and urban communities as an alternative to coal-fired power plants.

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