Sinopec has announced plans to build natural gas storage facilities with a total capacity of 55.6 billion m3 in northern China.
According to Platts, the facilities will be located in the northern Henan province to ease supply bottlenecks in peak winter season.
The company did not give a timeline or investment amount of building the new capacity. This follows PetroChina's announcement of the construction of nearly 20 bcm of underground gas storage in northeast China.
Sinopec's gas storage cluster will comprise 16 facilities built at the site of abandoned oil and gas fields in the province.
China is set to become the world's largest gas importer within the next three years, however the lack of pipeline and gas storage capacity has affected the growth of LNG demand.
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