A rendering of the LNG terminal on Liuheng Island in Zhoushan. [Photo/Tide News]

Construction officially began on the liquefied natural gas terminal on Liuheng Island in Zhoushan, Zhejiang province, on Feb 8.

The project – a joint venture between Sinopec and Zhoushan – is expected to significantly enhance the province's natural gas supply capabilities and improve the nation's gas storage and peak-shaving capacity in the East China region.

Situated in the Xiaoguojiao Industrial Park on Liuheng Island, it's a key initiative under the national 14th Five-Year Plan (2021-25). With a total investment of 10.4 billion yuan ($1.42 billion) and covering an area of 69.67 hectares, the project is set to make a substantial impact.

The project consists of two main components – the wharf and the receiving station. Major construction elements include a new 266,000-cubic-meter LNG ship unloading berth, an LNG loading dock, a workboat dock, five 220,000-cubic-meter LNG storage tanks, and associated facilities for gasification and LNG loading. On completion, the terminal will have a maximum annual receiving capacity of 7 million metric tons.

"Following the project's commencement, we aim to build a green, low-carbon, digitally empowered and resource-efficient LNG terminal," said Zhou Wei, general manager of Sinopec Zhoushan Liquefied Natural Gas Co.