Tuesday, November 18, 2008

Shanghai receives first spot cargo of Petronas LNG

Eric Watkins
Oil Diplomacy Editor

LOS ANGELES, Nov. 18 -- Shanghai Gas Group Co. (SGG), majority owned by Shenergy Group, has received its first spot cargo of LNG from Malaysia's Petronas.

SGG said a 20,000 cu m LNG carrier from Malaysia arrived at Shanghai's 120,000 cu m capacity Wuhaogou terminal Nov. 15. The terminal, the smaller of the two LNG terminals being developed in Shanghai, only receives spot cargos.

In October, Shenergy Group completed construction of two 50,000 cu m LNG steel storage tanks at the Wuhaogou terminal after 2 years of construction. The tanks were scheduled to start receiving LNG supplies from Malaysia beginning in mid-November.

Petronas subsidiary Malaysia LNG Tiga Sdn. Bhd. is scheduled to supply Shanghai's other regasification facility, which is comprised of three 165,000 cu m LNG storage tanks. It is a joint venture project of Shenergy Group and China National Offshore Oil Corp.

The Malaysian firm will begin LNG deliveries in February 2009 under a 25-year contract. First-phase receiving capacity will be 3 million tonnes/year building to 3.03 million tpy of LNG in 2012. The terminal will enter a trial run in April and will come online in July.

The Chinese joint venture company also aims to construct an additional 3 million tonnes of LNG receiving capacity for its second phase by 2015, depending on the future gas market.

Shanghai receives first spot cargo of Petronas LNG
Oil & Gas Journal, TX