HomeNewsChina to start up Guangdong LNG terminal, ExxonMobil has 20-yr access

China to start up Guangdong LNG terminal, ExxonMobil has 20-yr access

9/26/2024

China's Guangdong Energy Group is expected to start commercial operation of a new liquefied natural gas (LNG) receiving terminal in south China next week, which U.S. major ExxonMobil has agreed to use under a 20-yr agreement, two industry sources said on Thursday.

The $1-B terminal in Huizhou in Guangdong province can handle 4 metric MMtpy of LNG. It received its first cargo from the United Arab Emirates last month in a trial operation, the sources said.

ExxonMobil agreed last December to use the terminal to handle 1.8 MMtpy of the LNG under a 20-yr deal with Guangdong Energy, a utility and gas importer backed by the provincial government, said one of the sources who has direct knowledge of the matter.

An ExxonMobil China representative confirmed the agreement for terminal access, which the company had not previously announced.

The two sources said the agreement does not include an equity stake for Exxon.

Last year, it was that ExxonMobil was in discussions to invest in the LNG business in Guangdong province.

Exxon will use the terminal partly to supply gas to its fully-owned multi-billion-dollar chemical complex in Huizhou which is now in an advanced stage of construction and expected to start operation in 2025, the sources added.

Guangdong Energy began building the terminal around mid-2021. It includes three 200,000-m3 storage tanks and one berth capable to receive 266,000-m3 LNG tankers.

Guangdong, China's largest gas consumer by province, has built LNG receiving facilities with combined an annual capacity of 32.6 MMt, according to Chinese consultancy Sublime China Information.

 

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