Guangzhou Gas: first LNG cargo for Nansha terminal

Guangzhou Gas' Nansha LNG terminal begins operations with the arrival of the LNG carrier MARAN GAS CORONIS, marking a crucial step forward in local energy planning. In addition, Guangzhou Gas plays a leading role on the energy scene thanks to international LNG contracts and its role as the main gas distributor in the city of Guangzhou.

Share:

Guangzhou Gas’ newly-built Nansha LNG terminal, with a capacity of 1 million tonnes per year, has started operations under phase 1 after receiving the first cargo on August 8, a company official told S&P Global Commodity Insights on August 9.

Guangzhou Gas inaugurates its Nansha LNG terminal with the arrival of a Sinochem LNG carrier

The LNG carrier MARAN GAS CORONIS carrying 142,889 m3, or around 63,000 tonnes of LNG, arrived at Guangzhou Gas’ Nansha LNG terminal on August 8, according to S&P Global Commodities at Sea. Located in the city of Guangzhou, on China’s southern coast, the Nansha terminal is the third to be commissioned in China in 2023, and the 27th LNG receiving terminal in the country. Guangzhou Gas was originally scheduled to start operations at the Nansha LNG terminal at the end of June. However, the head of the company said that certain government formalities had delayed its start-up.

The company official said that Sinochem, one of China’s four largest state-owned oil companies, had supplied the LNG cargo for commissioning. Previously, two companies had also started up operations at their LNG terminals. These are Zhejiang Energy Group’s new 3 million tons per year LNG terminal in the eastern city of Wenzhou on August 7, and Suntien Green Energy’s 5 million tons per year LNG terminal phase 1 in Caofeidian, in the northern city of Tangshan, on June 18, S&P Global reported earlier.

Guangzhou Gas’ parent company – Guangzhou Development Group, a provincial government-owned electricity and natural gas supplier – signed a 10-year contract in March 2022 to buy 400,000 tons of LNG per year from Sinochem for delivery between 2023 and 2032, S&P Global previously reported. In November 2021, Sinochem signed a 17.5-year contract with US company Cheniere for the purchase of 1.8 million tonnes of LNG per year, with deliveries starting in July 2022.

Guangzhou Gas’ Nansha LNG Terminal: A key pillar for peak shaving and energy security

As an emergency peak-shaving reserve project, Guangzhou Gas’ Nansha LNG terminal is a key construction project in the energy planning of the 13th Five-Year Plan and the 14th Five-Year Plan of Guangdong Province and Guangzhou City respectively. The project will be built in two phases.

In its first phase, Guangzhou Gas will provide the terminal with 320,000 m3 of LNG storage capacity, meeting Guangzhou’s emergency natural gas needs for 10 days. In addition, completion of the second phase will enable the terminal to reach an emergency LNG storage capacity of 640,000 m3, meeting the city’s emergency natural gas needs for 15 days, the Guangdong Provincial Department of Emergency Management (DEMGP) said earlier.

Phase 1 of the Guangzhou LNG peak shaving project is currently designed to handle 1 million tonnes of LNG per year. It includes two LNG storage tanks of 160,000 m3 each and a quay capable of accommodating LNG ships from 30,000 to 147,000 m3. Phase 2 will add two additional LNG storage tanks of 160,000 m3 each, which are currently in the preliminary design phase, according to DEMGP.

Guangzhou Gas: A major player in the energy landscape with international LNG contracts

Guangzhou Gas, which distributes natural gas via pipelines and trucks, is the largest gas supplier and pipeline operator in the city of Guangzhou. In addition to signing a forward contract with Sinochem, in April 2022 Guangzhou Development signed an LNG sales and purchase agreement with Mexico Pacific to buy 2 million tonnes per year of LNG from Mexico Pacific LNG Markets Pte. Ltd. for a period of 20 years. LNG deliveries under this contract will commence when commercial operations officially begin on the Mexico Pacific LNG export project, S&P Global previously reported.

Guangzhou Development had also signed an SPA with international oil company BP for the purchase of 650,000 tons/year of LNG for the period 2022-34, as well as natural gas sales agreements with certain city gas companies in the Hong Kong-Macao Greater Bay Area to supply city gas companies with long-term gas volumes. Guangzhou Development is one of the leading electricity suppliers in Guangdong province, one of China’s most industrialized regions. It is the largest supplier of electricity in its capital, the city of Guangzhou, with 12 power plants with a total installed capacity of around 4.05 GW, according to the company’s website.

Italian group Eni signs a twenty-year liquefied natural gas supply contract with US-based Venture Global, covering two mn tonnes per year and marking a first for the company from the United States.
The discovery of the Gajajeira field marks a major step for Angola, strengthening its natural gas development strategy and diversifying national energy resources in a context of sector transition.
The Voskhod vessel, under US sanctions, docked at the Arctic LNG 2 plant in Russia, marking the second visit by a sanctioned ship to the site this year, according to maritime tracking data.
Japan has urgently secured several additional cargoes of liquefied natural gas from the United States to avert an imminent electricity supply shortage caused by rapidly declining national reserves expected at the end of July.
The European Commission has unveiled a proposal to prohibit the import of Russian gas into the Union, sparking intense debate on its feasibility, contractual impact and consequences for supply security among several Member States.
CNOOC Limited announces the discovery of a significant oil and gas reservoir in the buried hills of the Beibu Gulf, opening new opportunities for shallow water exploration off the coast of China.
TotalEnergies’ Mozambique LNG gas project is at the centre of a legal challenge in Washington, following the approval of a $4.7 bn loan by the US Exim Bank, amid security concerns and opposition from civil society groups.
Investors are closely watching U.S. midstream companies’ announcements regarding new gas pipeline expansions targeting promising markets in the West and Northeast, beyond traditional regions in Texas and the Southeast.
PPL Corporation and Blackstone Infrastructure announce a strategic partnership to develop new gas-fired power plants to supply electricity to data centers through long-term contracts in Pennsylvania.
Falcon Oil & Gas Ltd announces a new record initial flow test result at the Shenandoah S2-2H ST1 well and the start of its 2025 drilling campaign in the Beetaloo Basin.
Technip Energies has secured a contract to lead preparatory works for a floating liquefied natural gas unit in Africa, confirming its presence in the international gas infrastructure market.
The Slovak government is seeking guarantees from the European Union to secure its supplies as talks continue over ending Russian gas and adopting a new round of sanctions.
ArcLight Capital Partners announces the acquisition of Middletown Energy Center, a combined-cycle natural gas power plant, aimed at meeting the substantial rise in energy demand from data centers and digital infrastructure in Ohio.
The commissioning of LNG Canada, the first major Canadian liquefied natural gas export facility led by Shell, has not yet triggered the anticipated rise in natural gas prices in western Canada, still facing persistent oversupply.
Horizon Petroleum Ltd. is advancing towards the production launch of the Lachowice 7 gas well in Poland, having secured necessary permits and completed preliminary works to commence operations as early as next August.
European Union member states have requested to keep their national strategies for phasing out Russian gas by 2027 confidential, citing security concerns and market disruption risks, according to a document revealed by Reuters.
TotalEnergies becomes a member of PJM Interconnection, expanding its trading capabilities in North America's largest wholesale electricity market. The decision strengthens the company's presence in the United States.
Turkey has connected its gas grid to Syria’s and plans to begin supplying gas for power generation in the coming weeks, according to Turkish Energy Minister Alparslan Bayraktar.
Despite record electricity demand, China sees no significant increase in LNG purchases due to high prices and available alternative supplies.
US natural gas production and consumption are expected to reach record highs in 2025, before slightly declining the following year, according to the latest forecasts from the US Energy Information Administration.