A major project focusing on the construction of a liquefied natural gas (LNG) terminal was recently promoted in Liuheng town in Putuo district, Zhoushan, East China's Zhejiang province.

The LNG project, with a cost of 16 billion yuan ($2.3 billion), was funded by an LNG company established by Zhejiang Energy Group Co, Liuheng Tidal Flat Reclamation Development Co and Shenzhen Energy Natural Gas Investment Holding Co.

The LNG company signed an agreement to construct the project with the Liuheng town government on Oct 18 at the 3rd International Petroleum and Natural Gas Enterprises Conference in Zhoushan.

The company held its first meeting for shareholders and elected members of the board of directors and the board of supervisors on Nov 15.

The company has completed most of the preliminary work for the construction of the LNG terminal, said a high-ranking employee of the company.

According to local officials, the town will continue to improve the business environment and help promote the project in the future.

The town also plans to build a comprehensive industrial park for the LNG industry.