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CNOOC slows down building of LNG receiving terminal in Shenzhen

2015-05-28 GMT+8:00

BEIJING, May 27 (Xinhua) - CNOOC Shenzhen Gas Co., Ltd., a joint venture controlled by CNOOC Gas and Power Group, has slowed down the building of a LNG receiving terminal in Diefu of south China's Shenzhen city, according to an industry insider with close ties with China National Offshore Oil Corporation (CNOOC).

The 4-million-tonne/year LNG receiving terminal in Diefu would come on stream in two to three years, said the source on the sidelines of the 9th Asia LNG Summit 2015.

The LNG terminal was once planned to come into operation in 2015 as the construction work started in the end of August of 2012 with estimated investment of around 8 billion yuan.

The weak profitability of LNG terminals is main concern of the project's promoters, according to the source.

China would import 25 million tonnes of LNG in 2015 and around 40 million tonnes of LNG in 2020, the source said.

Growth rate with China's natural gas consumption decelerated to 7.4 percent in 2014 from as high as 20.1 percent in 2011 with economic slowdown and hikes of natural gas prices amid market-oriented reforms.

Averaged turnover rate with China's 11 LNG receiving terminals stand at around 50 percent, said Xie Dan, deputy general manager with Sinopec Gas Company, a subsidiary of Sinopec Corp. (SNP.NYSE; 600028.SH; 0386.HK).

Competition in Chinese LNG market became very fierce since 2014, said Xie, adding that China has over 100 inland LNG plants with an annual processing capacity of over 18 billion cubic meters.

China is expected to consume 186.4 billion cubic meters of natural gas in 2015 with year-on-year growth less than 13.6 percent, according to Xie. (By Liu Yanan,