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Giants work on gas terminal
(China Daily)
Updated: 2005-04-30 08:40

Huaneng Group, one's of China's largest power producers, has joined forces with Asia's largest oil refiner Sinopec to build a liquefied natural gas (LNG) terminal and an auxiliary power plant in Qingdao, East China's Shandong Province.

According to a letter of intent signed by the two State-owned giants on Friday in Beijing, the terminal will import LNG from foreign countries and be constructed by Sinopec. Huaneng will build a power plant to be fuelled by the imported LNG.

As Sinopec's first LNG project, it has gained initial approval from the country's top policy planner, the National Development and Reform Commission, said Sinopec.

The oil company is still undertaking a feasibility study on the construction of the project, which has a designed LNG handling capacity of 3 million tons per year in the first phase to be finished by 2008, a vice-director surnamed Liu from Sinopec's development planning department told China Daily.

The Qingdao natural gas-fired power plant, upon completion, will be Huaneng's third and largest such power plant, with a designed installed capacity of 1.5 million kilowatts, a senior official from Huaneng told China Daily.

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