Beijing-Backed Bank Funds New LNG Terminal
The Beijing-headquartered Asian Infrastructure Investment Bank (AIIB) announced on December 17 it would invest $500mn in a new 5mn mt/yr LNG import project at China’s northern Tianjin port.
AIIB said it was supporting China’s transition towards a low-carbon energy future. Its funding will be used in the construction of LNG receiving, storage and regasification facilities in Tianjin’s Binhai district. The project’s developer is state-run Beijing Gas Group (BGG).
By increasing gas supply, the terminal will cut coal consumption by 11.9mn mt/yr, reducing emissions of CO2, SO2, NOx and particulate matter in the Beijing-Tianjin-Hebei area, according to the bank.
In documents on its website, AIIB states that its financing is in the form of a loan with a 20-year maturity and a five-year grace period. The project's overall cost is $1.9bn, with BGG covering $834mn of this sum, and Beijing’s municipal government $572mn, the documents state. Financing was approved this month, and the terminal should take five years to build.
The project also involves the laying of a 229-km pipeline connecting the terminal with three major trunk lines in the area, as well as a wharf. AIIB was set up in January 2016 and now boasts 100 approved members worldwide, with China as its biggest shareholder.