Royal Dutch Shell says it has signed a letter of intent with energy firm Guanghui Energy to build a liquefied natural gas (LNG) import terminal in east China.
The non-binding agreement would see Shell jointly investing and operating in Guanghui’s proposed facility at Qidong, in Jiangsu province from its second phase.
Guanhui plans to start the project with a 600,000 tonnes per year storage and transit plant, followed by a 1.5million tonnes per year import facility from phase two.
A proposed third stage would see them expanding to a 3.5million tpy import terminal.
All three developments are dependent on regulatory approval.
“Shell and Guanghui Energy have signed a non-binding Letter of Intent that confirms the intention of the two parties to explore the possibility of developing a LNG import terminal project in Qidong, Jiangsu province,” said Chen Xiaoni of Shell Companies China.
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