Zhejiang Energy Group Natural Gas Co, Shenzhen Energy Group Gas Investment Co, and the administrative committee of Liuheng town sign an agreement on May 14 in Hangzhou to build a liquefied natural gas terminal in the town. [Photo/WeChat account: china-zjftz] 

The administrative committee of Liuheng town in Zhoushan, East China's Zhejiang province will cooperate with energy giants Zhejiang Energy Group Natural Gas Co and Shenzhen Energy Group Gas Investment Co in building a liquefied natural gas (LNG) terminal in the town. 

The three parties signed a cooperative agreement at a seminar for gas companies from the Yangtze River Delta and the Pearl River Delta held on May 14 in Hangzhou, capital of Zhejiang province. 

The project, involving a total investment of 16 billion yuan ($2.33 billion), is the first cooperation between the two deltas in the energy field, and will see the first LNG terminal to be built in the town, with the annual capacity of handling 12 million tons of LNG. 

"We've provided necessary support for the project in its preliminary work such as securing administrative approval, to help land the project as soon as possible. Next we will improve the business climate for its subsequent construction and development, and strive for access to preferential regional and national policies," said an administrative official of the town. 

Liuheng town has been leveraging its solid industrial foundations in shipbuilding, energy production and bulk commodity warehousing and transport in recent years to develop itself into an international hub in these areas.

The anticipated LNG terminal will help make the town a pacesetter in the LNG industry in the Yangtze River Delta region and contribute to the construction of a whole oil & gas industrial chain in the China (Zhejiang) Pilot Free Trade Zone. 

Liuheng also plans to build a comprehensive LNG industrial park in the future, to establish a whole industrial chain integrating LNG transport, receiving, processing, utilization and equipment manufacturing.

The to-be-built LNG terminal will be located in a reclamation area in Liuheng town. [Photo/WeChat account: china-zjftz]