The Huizhou LNG terminal in Guangdong, China, has received its commissioning cargo via the Das Island LNG-sailed Maran Gas Coronis, our data showed last week. With three 200,000 cubic metre tanks and a 6.10 million tonnes of annual capacity, the terminal is a prominent component of regional low-carbon strategies. In line with ongoing LNG capacity expansions nation-wide, China's LNG demand is rebounding strongly since 2022, up 12pct in the first eight months of this year compared to the same period in 2023, according to our data and calculations.
Our shipping data on Friday showed the Das Island LNG-sailed Maran Gas Coronis had arrived at the new Huizhou LNG terminal in southeast Guangdong Province, China. The calculated 0.06mmt delivery this marks the new facility’s commissioning cargo.
Project Specifications and Progress
The first phase of the Huizhou LNG terminal includes three LNG storage tanks, each with a capacity of 200,000 cubic meters. The terminal also features a single jetty capable of accommodating the world's largest LNG carriers. With a planned annual capacity of 6.1 million tonnes per annum (mtpa), the terminal is designed to handle LNG vessels ranging from 80,000 to 266,000 cubic meters in size.
The second phase, if constructed, would add three more storage tanks of 260,000 cubic metres each and lift total receiving capacity to 10mtpa.
TGE, the company responsible for the EPC (Engineering, Procurement, and Construction) contract, announced the terminal’s mechanical completion of a significant milestone 20 days ahead of a revised schedule at the beginning of February, although initial plans had targeted the end of 2023 for the start of operations. The project, spearheaded by Guangdong Energy, commenced construction in July 2021 with a reported budget of 6.6 billion yuan, and represents a crucial component in both Guangdong Energy's and Huizhou city's carbon-neutral strategies as mandated by China’s central government.
Associated Developments
The Huizhou LNG terminal is part of a larger energy infrastructure development scheme in the region. Adjacent to Huizhou LNG is the Huizhou Power Plant, initiated in 2018, which aims to be one of China's largest LNG power generation projects. As of the end of 2021, the project’s power capacity stood at 1.17GW. With a planned eventual installed capacity of 3.04GW, it promotes itself as a prominent aspect of China’s low-carbon economy. It is a combined cycle gas turbine power plant that is used for baseload.
LNG supply
In October 2018, ExxonMobil agreed to supply Zhejiang Provincial Energy Group with 1.0mmt of LNG annually for 20 years. The deal marks the Chinese company's first long-term supply agreement for LNG in China.
Chinese LNG demand
China’s LNG has been in growth mode for years, interrupted only by the LNG price explosion seen in 2022. According to our data and calculations, the country’s LNG offtakes increased by 17pct to 79.18mmt in 2021 before dropping to 63.52mmt in 2022. However, demand swiftly rebounded as prices eased, with offtakes climbing back to 73.01mmt in 2023. Demand for the first eight months this year amounted to 52.04mmt, our data showed at the time of writing. This was up 5.42mmt (12pct) from the 46.62mmt we recorded for the January-August period in 2023.
