CIMC Enric Holding Ltd, equipment manufacturing unit of China International Marine Containers (Group) Ltd, has secured a deal to deliver two liquefied natural gas (LNG) storage tanks as part of China’s first civil demonstration project to use LNG to fuel international vessels.
The Chinese outfit will deliver the units, each with a capacity of 160,000 m3, to ENN Group’s LNG fuelling terminal project in the Marine Industry Cluster Zone of the Zhoushan Archipelago New Area in 2018.
The design, procurement and construction work of the storage tanks will be completed by Nanjing Yangzi Petrochemical Design Engineering Co Ltd and Germany-based TGE Gas Engineering GmbH – both subsidiaries of CIMC Enric.
The Chinese central government granted ENN permission to build the LNG receiving terminal in Zhoushan in 2015. It will be built in three phases under a total investment of ¥10bn ($1.5bn).
Once completed and put into operation, its annual handling capacity will reach 10 million tonnes.
Under the plan, two more 160,000 m3 storage tanks will be constructed for Phase II and then four more for Phase III.
He Jingtong, a professor specialising in energy security at Tianjin’s Nankai University, said that the global energy glut and the sluggish economy will continue to drive down the price of LNG, meaning that imports of the super cooled fuel will be cheaper than domestic production.
“China’s LNG imports and related infrastructure facilities are expected to rise in the long-term amid mounting pressure caused by air pollution,” Jingtong explained.