TGE Gas clinches LNG terminal job from China’s Shenzhen Gas

A unit of Germany-based TGE Gas Engineering has secured an EPC contract from China’s city gas distributor Shenzhen Gas for the Shenzhen LNG storage and peak shaving II expansion project.

CIMC’s unit TGE Gas said in a statement issued on Thursday it will work on this project in a consortium with CIMC Enric Engineering Technology (CET) and China Construction Second Engineering Bureau (CSCEC).

The contract is worth about 1.76 billion yuan ($246.9 million).

According to TGE Gas, the scope of work includes two 160,000-cbm full containment LNG storage tanks, a process plant, and a new loading/unloading jetty able to receive LNG vessels with capacities from 3,000 to 217,000 cbm.

Following the completion of works, the LNG plant will have a capacity of 2 million tons per year, it said.

Earlier this year, Shenzhen Gas took delivery of its first 79,960-cbm mid-sized LNG carrier from Hudong-Zhonghua.

The shipbuilder says Dapeng Princess is the world’s largest LNG vessel built to navigate shallow waters and can enter China’s Yangtze River and Pearl River even during the dry season.

Dapeng Princess has a draft of less than 8.5 meters and will serve the Hua’an LNG peak shaving terminal in Shenzhen, Hudong-Zhonghua said.

Back in 2021, Shenzhen Gas signed a long-term deal to buy LNG from a unit of energy giant BP.

Under the contract, Shenzhen Gas will take about 225,000 to 300,000 tons a year of LNG from BP China, starting from January 2023 and ending in December 2032.

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