A sub-sea pipeline linking China’s first major independent LNG terminal, owned by ENN Group, to the provincial gas grid has finally been completed, according to Reuters.
An ENN official confirmed the facts to the newswire on 11 August. The 3 million TPA import terminal is located on Zhoushan Island in Zheijang province in the east of China, and began operations in 2018. However, a delay in the completion of the pipeline meant that imports were limited. ENN Group has long-term sales and purchase agreements in place with Chevron and Origin Energy, and an agreement to buy LNG from Total. However, sources told Reuters that the company had sold some of the cargoes back because of the lack of a pipeline.
Gas is now flowing through the pipeline in small volumes, and more imports are expected to follow. The 81 km, 8 billion m3/y capacity pipeline connects to Hang Yong Line’s provincial pipeline, beginning at the Zhoushan Island LNG plant and terminating at Zhenhai in Ningbo.
The Zhoushan Island terminal is expected to be expanded to 5 million TPA in the first half of 2021, Reuters reports.