Chinese private gas distributor ENN Energy Holdings is expected to boost LNG imports after starting up a new subsea pipeline which connects its 3 million tons/year Zhoushan receiving terminal to demand centres in Ningbo city in the eastern Chinese province of Zhejiang. The terminal is built on an island and started operation in 2018. However, it has been underutilized due to the government’s limit on the number of trucks that can deliver LNG inland.
Hence, the new 81-km Yongzhou subsea natural gas pipeline is expected to resolve this logistical issue and allow ENN to ramp up the terminal run rates and LNG imports. Multiple market sources expected ENN to increase LNG imports to around 2 million tons this year from 732,000 tons last year. The terminal received around 720,000 tons of imported LNG in January-May.
The new pipeline will also allow ENN to fulfil its 5-year to 10-year contractual obligations for a total of 1.43 million tons/year of LNG from global suppliers such as Total, Chevron, and Australia’s Origin Energy. ENN has reportedly deferred some contracted volumes because of the logistical bottleneck.
Zhejiang Energy, which operates the natural gas distribution network in the province, said that the Yongzhou pipeline began transmitting gas from Zhoushan terminal on August 6. The 8 Bcm/year pipeline also connects to Zhejiang Energy’s network and becomes the 8th source that feeds gas to the provincial network.
OneLiner: ENN Energy Holdings Seen Boosting LNG Imports After Yongzhou Pipeline Startup
