Chinese state oil company CNOOC is building two of six new LNG tanks at the Jiangsu Binhai LNG terminal in Henan Province, while CNNC has commissioned two LNG tanks at the Shanghai LNG terminal.
The six new tanks at Jiangsu Binhai LNG terminal form the first phase of a new expansion project for natural gas peak reduction in Henan and the Jiangsu Valley, and are expected to be operational in 2023.
Henan Province has commissioned CNOOC to design, construct and operate the first two 270,000 m3 tanks under a new development model. Under the model, regions with natural gas pipeline network interconnections are encourage to invest in the construction of storage facilities outside of their regions. According to China’s State-owned Assets Supervision and Administration Commission of the State Council (SASAC), this is the first time the model has been implemented. It will meet the growing demand for gas storage capacity in Henan and open up new sources of gas supply.
SASAC expects the new model to overcome previous difficulties in the development of gas storage facilities, including large initial investment, difficulties in site selection, and high operating costs, especially in inland provinces. Tank farms built under the new model can make full use of existing public facilities and reserved construction land, reducing operating costs.
The two 200,000 m3 tanks at Shanghai will increase the storage capacity of the terminal by 80% and are the largest single capacity, shallow base LNG storage tanks in China. The increased capacity will provide increased energy security for Shanghai. CNNC has more than 50% of China’s domestic cryogenic tank construction market share. In the past 20 years it has completed more than 6 million m3 of storage capacity.