Shell, PipeChina pen LNG terminal use deal

LNG giant Shell became the first international energy firm to sign a terminal use agreement with state-owned China Oil and Gas Pipeline Network (PipeChina).

Units of Shell and PipeChina signed two LNG terminal use agreements on February 22.

In addition, Shell Energy (China) and PipeChina LNG Terminal Management penned a memorandum of cooperation as well, according to a statement by the latter.

The LNG terminal deals mark an important step in opening up of PipeChina’s LNG terminals for third party access, PipeChina LNG Terminal Management said.

The terminal use deals include Yuedong LNG and Beihai LNG facilities for 2022, it said.

As per the memorandum, the two firms would collaborate on long-term use of PipeChina’s LNG receiving terminals, PipeChina LNG Terminal Management said.

Ten LNG import terminals

China launched PipeChina in December 2019 to acquire pipelines and LNG import terminals from the country’s state-owned energy giants.

PipeChina LNG Terminal Management was established about a year later and currently operates seven LNG receiving terminals, the statement said.

This accounts for about one-third of China’s total LNG receiving capacity, it said.

Also, the firm is building three new LNG terminals in Shandong, Fujian, and Shenzhen.

Rising LNG imports

China’s LNG imports reached 78.93 million tonnes in 2021, hitting a new record high due to rising demand from the power generation and industrial sectors.

With this, China officially became the world’s largest LNG importer, overtaking Japan.

Last year, Shell signed a ten-year deal with QatarEnergy to receive LNG supplies from Qatar to China.

Under the SPA, QatarEnergy will supply 1 million tons per year of LNG to various import terminals in China, starting in January 2022.

Besides this deal, Shell also signed the world’s first term contract for carbon-neutral LNG with a unit of PetroChina.

Shell expects Chinese LNG imports to nearly double by 2040.

Most Popular

Glenfarne still expects Texas LNG FID by end of this year

US energy firm Glenfarne confirmed it is targeting a final investment decision on its planned 4 mtpa Texas LNG export project in the port of Brownsville by the end of 2025 after the US FERC issued the final supplemental environmental impact statement for the project.

Kosmos: Tortue FLNG to hit full capacity in Q4

UK-based energy giant BP and its partners expect the 2.7 mtpa Golar FLNG Gimi, which serves the Greater Tortue Ahmeyim LNG project offshore Mauritania and Senegal, to reach its nameplate capacity in the fourth quarter of this year, according to US-based Kosmos Energy.

Equinor’s Hammerfest LNG back online after maintenance

Norwegian energy firm Equinor has resumed operations at its 4.3 mtpa Hammerfest LNG export plant following an extended maintenance shutdown, a spokesperson for Equinor told LNG Prime on Monday.

More News Like This

Peru LNG sent five cargoes in July

Peru LNG’s liquefaction plant at Pampa Melchorita has shipped five liquefied natural gas cargoes in July, the same as in the previous month.

Fluor, JGC score FEED job for LNG Canada expansion

A joint venture of US engineer Fluor and Japan's JGC has been awarded the contract to update the front-end engineering and design (FEED) for a proposed Phase 2 expansion of the Shell-led LNG Canada project.

Shell CEO says LNG Canada ramp-up in line with expectations

LNG Canada's production ramp-up is "very much" in line with what Shell had expected, according to Shell CEO Wael Sawan.

Shell’s Q2 profit reaches $4.26 billion, LNG sales climb

LNG giant Shell reported a drop in adjusted earnings in the second quarter of 2025, while its LNG sales rose compared to the same quarter in 2024.