China Zhenhua Petroleum is having in-depth discussions on joining a provincial-level government-backed company to build a natural gas terminal in East China, which is the first import facility that a state-owned trader will have. Zhenhua Oil is one of the niche natural gas importers and is expected to lead the next wave of terminal expansion along with private companies such as ENN Group and pipeline natural gas distributor Guangzhou Gas . China is increasing its use of low-carbon fuels instead of coal.

As a subsidiary of the defense giant North Industries Group, Zhenhua is finalizing a joint venture with Jiangsu Guoxin Investment Group, a company that owns natural gas pipelines supported by the provincial government for terminal investment. In 2020, Jiangsu is China's largest natural gas consumer, with a gas consumption of 30.7 billion cubic meters, slightly less than 10% of China's total.

The joint venture combines Guoxin's advantages as a provincial pipeline operator in the largest natural gas consumption region and Zhenhua's strength as an experienced dealer with global oil and gas assets. "Guoxin is expected to hold 61% of the matching enterprises, 34% of Zhenhua, and the remaining 5% of the Yangkou Port Authority. The investment in the first phase is estimated to exceed 6 billion yuan (92884 million US dollars), and the partners will build Three storage tanks of 200,000 cubic meters, with an annual processing capacity of 3 million tons.

Keywords: engineering construction information, state-owned enterprise engineering news

The construction of Sunshine Island, an artificial island in Rudong County, started in June and is expected to be completed by the end of 2023. Zhenhua is the smallest Chinese state-owned oil and oil and gas production company in Abu Dhabi, Egypt and Kazakhstan. It established the LNG division in mid-2018 and has been an active spot trader of ultra-cold natural gas ever since. It was one of the first traders to win a natural gas terminal auction operated by the state-owned oil and gas giant CNOOC. Since 2019, its LNG transaction volume has doubled, reaching more than 1.5 million tons in 2021. Jiangsu currently has only two liquefied natural gas receiving stations, which can handle 9.5 million tons of imported liquefied natural gas each year, which is half of that of Guangdong in southern China.Editor/Xing Wentao