Chinese wind power player China Suntien Green Energy is venturing into liquefied natural gas with plans to set up an LNG import facility in north China by the end of 2022.
The company backed by the Hebei provincial government would join a small group of companies that own and operate such facilities, besides the state energy giants.
In a filing to the Hong Kong stock exchange, China Suntien Green Energy said that the Tangshan LNG project has received approval by the National Development and Reform Commission.
The facility is to be located inside the Caofeidian Port Logistics Park, Tangshan City, Hebei Province and will have an estimated unloading capacity of 12 million tons of LNG per year at full buildout.
The project would be constructed in three phases with the facility including two berths capable of handling 10 mtpa, with the third berth planned to be built jointly with a third-party enterprise in order to obtain 2 million tons per year of the total unloading capacity.
The total estimated investment for the project is at 25.39 billion Chinese Yuan Renminbi ($3.6 billion) which excludes the construction of the third berth that will be built by the third-party. The investment in the first phase is estimated at 8.07 billion RMB ($1.1 billion).
The project will be funded through self-owned capital and loans from financial institutions.
The construction of the Tangshan LNG project is aimed at optimizing the distribution of LNG terminals in China, increasing the supply and reserves of natural gas in Hebei province and surrounding areas and the emergency peaking capability.