Construction of Jiangsu Huadian Ganyu LNG terminal begins

China continues its expansion in the LNG sector with the construction of the Jiangsu Huadian Ganyu terminal. With a capacity to receive 3 million tons per year, this project is one of four approved by the central government in 2022. The construction was launched in Ganyu port, Lianyungang and is expected to be operational in 2026.

Partagez:

The local government announced on its website that construction of the Jiangsu Huadian Ganyu LNG terminal has begun at Ganyu Port in Lianyungang, east China’s Jiangsu Province. The operation is planned for 2026. The terminal has a designed LNG receiving capacity of 3 million tons per year and is part of the national natural gas development plan and the province’s 14th five-year plan, the local government said.

 

One of the four projects approved by the central government in 2022

Jiangsu Huadian Ganyu LNG terminal is one of the four LNG receiving projects approved by the central government in 2022, which have a maximum combined LNG receiving capacity of about 24 million tons per year. The other three projects are Guangdong Energy’s Huizhou LNG terminal with a capacity of 6.1 million tons per year, Hanas Energy’s Putian LNG terminal with a capacity of 5.65 million tons per year and Urban Rural Energy’s Yingkou LNG terminal with a capacity of 6.2 million tons per year.

 

Huadian Jiangsu Energy, BP and three other shareholders jointly develop Jiangsu Huadian Ganyu LNG terminal

Jiangsu Huadian Ganyu LNG terminal, which is jointly developed by Huadian Jiangsu Energy, BP Gas & Power Investments and three other shareholders, has obtained construction approval from the National Development and Reform Commission, one of the country’s top economic planners, in June 2022.

Construction of the project was originally scheduled to begin in the second half of 2022, but was reportedly delayed due to the resurgence of COVID-19 in the country, according to market sources.

 

An LNG terminal including a quay, storage tanks and a pipeline

The project includes the construction of a wharf, storage tanks and a pipeline that connects to the regional natural gas distribution network and will have an annual LNG receiving capacity of 3 million tons, or 4.2 billion cubic meters, according to the Lianyungang government.

The total planned construction period is 33 months and the dock will include a new 150,000-ton LNG dock capable of accommodating industry-leading 217,000 cubic meters of LNG carriers, the local government said.

China Huadian Group Corp. is one of the five largest state-owned power companies in China. The Jiangsu Huadian Ganyu LNG terminal is Huadian Group’s first LNG terminal project and BP’s second in China. BP first participated in a Chinese LNG terminal project in 2006 with a 30% stake in the 7 million ton per year Guangdong Dapeng terminal. Located in Shenzhen, Guangdong Province, this LNG import and regasification terminal was the first in China and began operations in September 2006.

 

Increasing direct investment by Chinese power companies

China Huadian Group is one of China’s five largest state-owned power generation companies, and its investment in this LNG terminal marks a growing direct involvement of power companies in LNG supply and infrastructure, rather than going through domestic oil companies to procure fuel.

Jiangsu province currently has three LNG terminals: PetroChina’s 6.5 million ton per year Rudong terminal, Guanghui’s 5 million ton per year Qidong terminal, and CNOOC’s 6 million ton per year Binhai terminal. In addition, the Jiangsu provincial government and state-owned Zhenhua Oil are building a 2.95 million ton per year LNG terminal in the port of Yangkou, which is expected to begin operations in late 2024.

Despite negative natural gas demand growth in China due to high prices in 2022, the central government should continue to support the country’s long-term natural gas demand growth to meet its energy transition goals. According to NDRC data released in early February, natural gas consumption in China reached 366.3 billion cubic meters in 2022, down 1.7% from 2021.

The small-scale liquefied natural gas market is forecast to grow at an annual rate of 7.5%, reaching an estimated total value of $31.78bn by 2030, driven particularly by maritime and heavy-duty road transport sectors.
The European Union extends gas storage regulations by two years, requiring member states to maintain a minimum fill rate of 90% to ensure energy security and economic stability amid market uncertainties.
Energy Transfer strengthens its partnership with Chevron by increasing their liquefied natural gas supply agreement by 50% from the upcoming Lake Charles LNG export terminal, strategically aiming for long-term supply security.
Woodside finalises the divestment of a 40% stake in the Louisiana LNG project to Stonepeak, injecting $5.7 billion to accelerate developments and optimise financial returns ahead of first gas delivery scheduled in 2026.
Keranic Industrial Gas seals a sixty-day exclusivity deal to buy Royal Helium’s key assets, raise CAD9.5mn ($7.0mn) and bring Alberta’s Steveville plant back online in under fifteen weeks.
The Irish-Portuguese company Fusion Fuel strengthens its footprint in the United Arab Emirates as subsidiary Al Shola Gas adds AED4.4 mn ($1.2 mn) in new engineering contracts, consolidating an already robust 2025 order book.
Cheniere Energy validates major investment to expand Corpus Christi terminal, adding two liquefaction units to increase its liquefied natural gas export capacity by 2029, responding to recent international agreements.
A study by the International Energy Agency reveals that global emissions from liquefied natural gas could be significantly reduced using current technologies.
Europe is injecting natural gas into underground storage facilities at a three-year high, even as reserves remain below historical averages, prompting maximized imports of liquefied natural gas (LNG).
South Korea abandons plans to lower electricity rates this summer, fearing disruptions in liquefied natural gas supply due to escalating geopolitical tensions in the Middle East, despite recent declines in fuel import costs.
Russia positions itself to supply liquefied natural gas to Mexico and considers expanded technological sharing in the energy sector, according to Russian Energy Minister Sergey Tsivilyov.
Israel has partially resumed its natural gas exports to Egypt and Jordan following a week-long halt due to the closure of two major offshore gas fields, Leviathan and Karish.
Nepal reveals a significant potential reserve of methane in the west of the country, following exploratory drilling conducted with technical support from China, opening new economic prospects.
Petronas formalizes a memorandum with JOGMEC to secure Japanese LNG deliveries, including a first cargo from LNG Canada scheduled for July at Toho Gas.
Belgrade is currently finalising a new gas contract with Russia, promising Europe's lowest tariff, according to Srbijagas General Director Dusan Bajatovic, despite Europe's aim to eliminate Russian imports by 2027.
TotalEnergies and QatarEnergy have won the Ahara exploration licence, marking a new stage in their partnership with SONATRACH on a vast area located between Berkine and Illizi.
After four years of interruption due to regional insecurity, TotalEnergies announces the upcoming resumption of its liquefied natural gas project in Mozambique, representing a $20bn investment.
The French group has acquired from PETRONAS stakes in several licences covering more than 100,000 km² off Malaysia and Indonesia, consolidating its Asian presence and its exposure to the liquefied natural gas market.
In response to rising summer electricity consumption, Egypt signs import agreements covering 290 shipments of liquefied natural gas, involving major international firms, with financial terms adjusted to the country’s economic constraints.
Egyptian fertilizer producers suspended their activities due to reduced imports of Israeli gas, following recent production halts at Israel's Leviathan and Karish gas fields after Israeli strikes in Iran.