China's Zheijang LNG terminal receives first cargo
London, 21 September (Argus) — China's newly-inaugurated 3mn t/yr Zheijang LNG import terminal took receipt of its first cargo on 19 September. The 266,000m³ Zarga arrived at the facility carrying Qatari LNG.
The Zheijang terminal is a joint venture between China's state-controlled CNOOC and several local companies. CNOOC has supply-and-purchase deals with Australia's BG Group's QCLNG and with state-owned Qatargas. Total also holds a supply agreement for delivery to the terminal. In all cases, prices are linked to the Japan Crude Cocktail (JCC). A newly-inaugurated import terminal typically requires two to three commissioning cargoes in order to become commercially operational.
In July this year — the latest month for which official customs data is available — Chinese importers paid an average of $11.99/mn Btu for all deliveries.
The Zheijang terminal, located in China's Ningbo Zheijang province, has an annual regasification capacity of 3mn t of LNG in its first phase. It is capable of berthing both Q-Flex and Q-Max vessels. In its second phase of development, the facility has the potential to double its capacity to 6mn t/yr.
Including Zheijang, CNOOC now has four operational LNG terminals in China, with facilities in Dapeng, Shanghai and Fujian. The country as a whole has just under 45mn t/yr of regasification capacity across both existing and planned LNG import terminals.
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