CNPC to Construct LNG Storage in Hainan

China National Petroleum Corp (CNPC) has won approval for a liquefied natural gas (LNG) storage project on Hainan island, Reuters said citing a report in China Energy News.

The Shennan LNG storage project consists of 200,000 cubic metres of LNG storage tanks and a wharf with a receiving capacity of 10,000-20,000 cubic metres on LNG ships, the China Energy News reported. The cost of the project is expected to be 850 million yuan ($133.6 million).

The first phase of the project, with a storage capacity of 40,000 cubic metres, is expected to be put into operation in May 2013.

The storage tanks will be used to receive LNG from CNPC's two operating terminals in Rudong and Dalian as well as planned terminals in Tangshan and Shenzhen.