China's Guangzhou Gas plans LNG import terminal, eyes partnership with Woodfibre
BEIJING (Reuters) -- Guangzhou Gas Group plans to build a 2 MMtpy import terminal for LNG on China's southern coast by 2020, possibly in partnership with Woodfibre LNG, an executive with the Chinese firm said.
|Photo Courtesy of Woodfibre LNG.
The Guangzhou company agreed in 2016 to buy 1 MMt of LNG annually for 25 yr from an export facility that Woodfibre—a subsidiary of Singapore company Pacific Oil & Gas Ltd—is building on the west coast of Canada in British Columbia.
The proposal for joint investment in the Nansha LNG receiving terminal at Guangzhou port reflects efforts by LNG buyers and producers to share risks, said Liu Jingbo, deputy general manager of Guangzhou Gas, on Thursday.
Local government-backed Guangzhou Gas is one of China's fast-growing independent players in its LNG sector, outside dominant state giants like China National Petroleum Corp and CNOOC, having emerged over the past few years as a niche gas importer and infrastructure investor.
"We are considering investing in upstream (gas supply) and are also looking to producers to partner in the Nansha terminal," Liu said on the sidelines of an industry conference.
To secure gas beyond the Woodfibre deal for the Nansha terminal, Guangzhou Gas is looking for more flexible supplies under shorter terms, like three or five years, said Liu.
Guangzhou Gas supplies some 90% of the city's gas demand, with consumption forecast to more than double to 3.5 Bcm a year in 2020 from current levels, driven by industrial, commercial and power sectors, said Liu.
Liu said his company also has plans to branch into natural gas trading rather than just being a buyer and distributor.
Backed by Indonesian billionaire Sukanto Tanoto's RGE Group, parent of Pacific Oil & Gas, Woodfibre LNG is an often overlooked front-runner in the race to build Canada's first LNG export terminal. More than a dozen projects have been proposed along British Columbia's coast.
Reporting by Chen Aizhu; Editing by Tom Hogue
The ongoing development of shale gas resources in the US has spurred infrastructure construction for both natural gas processing capacity and LNG export terminals.
Russian natural gas monopoly Gazprom is strengthening its presence in the gas market of the Middle East through the planned construction of an 11-metric-MMtpy–12-metric-MMtpy LNG plant in Iran.
The New LNG Imperative
The shale gas boom established the US as the world’s leading natural gas producer and is responsible for billions of dollars of investments in the US gas processing industry. Since 2012, the US has witnessed unprecedented growth in new gas processing capacity and infrastructure. This rise is due to greater production of domestic shale gas, which is providing cheap, available feedstock to fuel the domestic gas processing, LNG and petrochemical industries. New gas processing projects include the construction of billions of cubic feet per day of new cryogenic and gas processing capacity, NGL fractionators, multi-billion-dollar pipeline infrastructure projects, and the development of millions of tons per year of new LNG export terminal construction. Attend this webcast to hear from Lee Nichols, Editor/Associate Publisher, Hydrocarbon Processing, Scott Allgood, Director-Data Services, Energy Web Atlas and Peregrine Bush, Senior Cartographic Editor, Petroleum Economist as they discuss the future of LNG and the application of Energy Web Atlas, a web-based GIS platform which allows users to track real-time information for every LNG project.
November 29, 2017 10am CST