Two Qatari Private Firms Plan to Build LNG Storage Facility in China

Two Qatari private firms have decided to invest $5 billion in China’s Shandong Dongming Petrochemical Group to develop multiple projects in China with primary focus on building an 3 million ton LNG storage facility.

Qatar’s Suhaim Bin Hamad Enterprises Group and Qatar Investment and Development Group (QID) announced a $5bn worth agreement to acquire 49 percent of Chinese petrochemical firm, Qatari newspaper The Peninsula reported Tuesday.

Shandong Dongming Petrochemical is China’s largest independent refiner.

The deal is likely to be finalised by the fourth quarter of this year, QID Chief Executive Ibrahim El Tenay told reported in Doha on Monday, The Peninsula reported.

The partners agreed to construct 1,000 mixed oil, non-oil and LNG/CNG stations within a 300-km radius of Dongming’s Heze refinery.

Parties agreed to build LNG and LPG port and storage facilities in Shandong or Jiangsu province, the newspaper reported.