BIZCHINA / Top Biz News
Shanghai launches LNG project with Malaysia
(Xinhua)
Updated: 2007-01-23 13:54
Shanghai on Monday launched a major energy supply project that will
transmit liquefied natural gas (LNG) from Malaysia to the east China
economic hub over 25 years.
Construction started on Monday on the first phase of the Shanghai LNG
project, which would become operational in 2009, Shanghai Mayor Han Zheng
announced on Monday.
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Shanghai LNG Co. Ltd. reached a deal with a subsidiary of Petronas,
Malaysia's national petroleum corporation, on July 31, under which the
terminal will receive LNG from Malaysia from 2009.
The project was approved by National Development and Reform Commission in
December.
The annual supply will be around 1.1 million tons in the first three
years and rise to 3 million tons from 2012.
The Shanghai terminal will be located in the Yangshan deep-water port, an
international shipping center in Shengsi County in neighboring Zhejiang
Province, at the mouth of the Yangtze River, about 45 km from the Pudong
International Airport.
The first phase involves a total investment of 7 billion yuan (900
million U.S. dollars) and includes three 165,000-ton concrete tanks and a
dock that can anchor ships from 80,000 to 200,000 cubic meters.
Sources with the Shanghai LNG Co. Ltd. said the second phase of the
project was designed to increase import capacity by another 3 million
tons a year, but no detailed timetable was available.
The project, along with China's west-to-east gas pipeline and the East
China Sea gas project, is expected to help meet Shanghai's energy
demands, improve energy efficiency and cut emissions, said a spokesman
with the National Development and Reform Commission.
The deal is the largest trade contract between China and Malaysia.
Petronas company draws its natural gas supplies from the Bintulu region,
one of the world's largest LNG production bases in eastern Malaysia. It
boasts an annual output of 23 million tons and supplies mainly to
countries like Japan and the Republic of Korea.
(For more biz stories, please visit Industry Updates)
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