China LNG Group has signed an agreement with the Jiangyin Management Committee to jointly invest and build LNG facilities in Changjiang port area, Jiangyin City.
The two companies will jointly work on developing an “LNG vessel terminal, LNG storage tanks, LNG tanker logistics base, LNG distributed energy, LNG refueling station and industrial coal-to-gas project.”
Under the agreement, the state-run Jiangyin Management Committee will support China LNG Group in the legal matters related to establishing the LNG business in Jiangyin City. The company will also provide policy support, including support on the construction o the plant and ancillary facilities, financing support.
China LNG Group plans on investing 3.5 billion Chinese Yuan ($528.6 million) for the construction of the facility.
The company noted that the facility will be located in an area rich in upstream LNG resources with Rudong and Qidong LNG receiving terminals in the Jiangsu province nearby. In addition a third LNG import terminal in the Jiangsu province, the Binhai terminal is expected to be completed in 2019.
The facility will also be close to the Yangtze River, enabling it to cover the inland transport sector.