China to Build World’s Largest LNG Storage Tanks
The Chinese state-owned Oil and Gas giant CNOOC is building the world's largest LNG storage tanks at the Binhai LNG import terminal, Yancheng, in Jiangsu province. The capacity of each tank will be 270,000 cubic meters.
CNOOC is the biggest importer of LNG in China. The Binhai terminal currently houses 4 tanks with a capacity of 220,000 cubic meters. After this construction project is completed and the larger tanks installed, the facility will boost the import capacity of CNOOC to the range of 9 million tonnes per annum (mpta). The company is also eying the possibility of constructing 10 more tanks, doubling the size of the plant.
China's voracious hunger for LNG stems partly from the energy crunch China faced last year, which led to blackouts and rationing of power in several regions. China's gradual shift from Coal to carbon neutral by 2060 was partly responsible for the blackout event. Even though Chinese President Xi Jinping has announced long-term goals to taper off expensive imports, the demand for LNG in China is increasing. Last year China became the largest importer of LNG globally, taking this mantle from Japan. CNOOC has struck $13 billion worth of deals to boost oil and gas supply, including drilling for oil supply and imports. CNOOC has pacts for crude oil imports and LNG with Kuwait National Petroleum Co. and US-based Energy Transfer LP.