The 145,000-m3 LNG carrier Stena Blue Sky has delivered an inaugural cargo to ENN Energy’s new 3-mta Zhoushan terminal in Zhejiang province in eastern China. The shipment, loaded at Ras Laffan in Qatar, marks the start of operations at China’s 21st LNG receiving terminal.
China’s receiving terminals comprise of 16 large LNG import terminals and five small-to-mid-scale distribution facilities. The Zhoushan installation opened up by ENN, China’s largest independent gas distribution company, is an import terminal and the first in China to be privately owned.
The Zhoushan terminal features two 160,000-m3 storage tanks and a large marine jetty capable of handling LNGCs in the 80,000-266,000 m3 size range. The facility has also been provided with a second jetty capable of handling smaller LNGCs, of 5,000-60,000 m3, as well as two berths for roro ships that can carry LNG road tankers and ISO tank containers loaded at the terminal.
There is room at Zhoushan for expansion and two further growth phases have been mooted. If the plan is implemented, Zhoushan could ultimately have eight 160,000-m3 tanks.
The Zhoushan terminal allows ENN to source its own gas supplies rather than have to purchase the fuel under long-term contracts from the country’s three large state-owned energy firms, China National Offshore Oil Corp, PetroChina and Sinopec.
ENN had its first brush with LNG in December 2014 when it purchased a spot cargo and imported it through PetroChina’s Rudong terminal. That consignment marked the first time a privately owned Chinese entity had imported LNG via third-party access at a state-owned terminal.
In recent years ENN has agreed with Chevron to purchase 0.5 mta from the latter’s Gorgon project in Australia for 10 years, commencing in 2018. Another sale and purchase agreement (SPA), for a similar volume, duration and start date, has been concluded with Total.
The final SPA that ENN has in place is with Origin Energy of Australia. It covers 0.5 mta for a period of five years.