China approves LNG Emergency Reserve Project in Binhai New District

Beijing Enterprises Holdings Limited has received the Chinese National Development and Reform Commission’s approval on the Liquefied Natural Gas Emergency Reserve Project.

According to the approval document, the NDRC has approved the construction of the liquefied natural gas emergency reserve project in Tianjin Nangang. The project is located at Nangang Industrial Area, Binhai New District, Tianjin and mainly comprises three parts: the receiving station, the pier and the outbound pipeline.

The Tianjin Nangang LNG Project project will be constructed in three phases. The first phase of the construction, which is expected to complete by the end of 2022 to form a preliminary emergency supply system, will include one LNG unloading pier, one LNG carrier berth, four storage tanks, certain related facilities for gasification and loading, as well as outbound pipeline connecting to Beijing. The second phase, which is expected to complete by the end of 2023, will include four storage tanks. The third phase, which is expected to complete by the end of 2024, will include two storage tanks.

The total investment cost of the project is approximately CNY20.13 billion (US$2.9 billion). The Beijing Municipal Government will grant to the project a free subsidy amounted to CNY5.78 billion (US$818.6 million), representing 30% of the construction cost of the project. Beijing Gas plans to finance the funds for the construction of the Tianjin Nangang LNG Project through several means including internal resources and low cost policy loans from financial institutions