The Chinese province of Guangdong is considering construction of a liquefied natural gas (LNG) import terminal to help meets growing demand for energy. The project, claimed to be the first of its kind in China, is scheduled to be completed by 2005.
The project has received initial authorization, but it still requires State Council approval. Once that is recieved, a feasibility study will be implemented, probably later this year.
The most likely site for the LNG terminal is Shenzhen and special economic zone close to Hong Kong. The project will be build be a consortium, expected to be led by China National Offshore Oil Corp, and will involve local interests in Guangdong. Foreign oil companies could also be involved.
The terminal will be linked to a new 400 km pipeline which will transport the gas to southern Guangdong. Fuel will be delivered to an existing oil-fired power plant in the Pearl river delta as well as to industrial and household consumers.
The remaining gas will fire a new power plant with a generating capacity of 2000 MWe. The station will probably be constructed in Huizhou.
Guangdong currently consumes around 90 TWh of power each year but has so far maintained self-sufficiency in electricity. Consumption grew by 7.6 per cent in 1998, the highest rate in China. There are further plans, still in their early stages, to build two more LNG terminals on China’s east coast.
