Shell, Guanghui Plan LNG Cooperation

Royal Dutch Shell and Guanghui Energy have signed a letter of intent to construct a liquefied natural gas (LNG) import terminal in east China, a Shell China official told Reuters.

Guanghui Energy plans to build LNG facilities in Qidong, Jiangsu province, starting with a 600,000 tonnes per year (tpy) storage and transit plant, according to a company statement released early this month, Reuters said.

In the second phase the company aims to then build a 1.5 million tpy LNG import facility under and a 3.5 million tpy import terminal in a third stage, Reuters reported.

The British firm would jointly invest and operate the facilities from the second phase, and the companies would explore the possibility of setting up a joint venture which would be controlled by the Chinese party, Guanghui said.