Sinopec's First LNG Terminal to Start Next Month

Chinese energy major Sinopec will start trial operations at its first LNG terminal by the end of October when its receives its first cargo, news agency Reuters reported last week quoting a company representative.

The Shandong LNG project, located in East China's Shandong province, will have receiving capacity of 3 million metric tons per year after completion of the first phase.

According to Reuters, the repetitive did not specify where the cargo will come from.

The terminal is designed to receive LNG imported from Papua New Guinea under a binding sales and purchase agreement between Sinopec and ExxonMobil concluded 2009.

According to Sinopec, after being put into operation, the project will play an important role in ensuring the natural gas supply for Qingdao and even for Shandong.

China currently has 10 LNG terminals in operation.