CNOOC Slows Down Work on Shenzhen LNG Terminal

CNOOC Shenzhen Gas Co., Ltd., a joint venture controlled by CNOOC Gas and Power Group, has slowed down work on LNG receiving terminal in Diefu, south of Shenzhen city, according to Xinhua Finance.

The news agency, citing company sources, said weak profitability of LNG terminals is main concern of the project's promoters. The 4-million-tonne/year LNG receiving terminal was originally scheduled to come online this year.

Since 2014, competition in Chinese LNG market has became very fierce, Xie Dan, deputy general manager with Sinopec Gas Company, a subsidiary of Sinopec Corp. told Xinhua Finance.

Average turnover rate with China's 11 LNG receiving terminals stand at around 50 percent, said Xie adding that the country has over 100 inland LNG plants with an annual processing capacity of over 18 billion cubic meters.