ENGIE and the Chinese company Shaanxi Houde Tongxing signed an investment agreement to establish a joint venture (75% Shaanxi Houde Tongxing and 35% ENGIE) aiming to build a 0.75 Mt/year (1 bcm/year) LNG industrial base in the North-West region of China and to develop LNG downstream activities. Both parties will jointly invest CYu1,400m (€200m) and construct a LNG industrial base in the Yujia Industrial Park, Yulin, Shaanxi Province, China.
The project construction is divided into 2 phases: Phase I, with a capacity of 0.25 Mt/year (0.34 mcm/year) of LNG, will start its commercial operation in July 2017, while Phase II, with a capacity of 0.5 Mt/year (0.68 mcm/year) of LNG, will commence commercial operation in February 2018. The natural gas will be provided by CNPC and Sinopec’s long-distance natural gas transport pipeline.
The industrial base will provide LNG to end-users such as industrial parks and residents in the North-West region of China that are not covered with natural gas pipelines and the transportation sector (heavy trucks, service vehicles, public transport…).