PipeChina outlines tariffs for LNG terminals

Market: Natural gas
15/10/20

China Oil and Gas Pipeline Network, or PipeChina, has published regasification tariffs and outlined spare import capacity at the six operational LNG terminals it has acquired from fellow state-controlled oil and gas firms CNOOC and Sinopec, as part of an effort to ensure transparency in offering third-party access to gas infrastructure.

The information comes after the firm began operations on 1 October following being set up in December 2019.

PipeChina's regasification tariffs range from the lowest at 0.18 yuan/m³ for the 3mn t/yr Beihai import terminal in Guangxi to the highest at Yn0.312/m³ for the 4mn t/yr Diefu terminal in Shenzhen. It also published tariffs for the 2.2mn t/yr Tianjin, 600,000 t/yr Fangchenggang, 2mn t/yr Yuedong and 3mn t/yr Hainan terminals.

The firm is offering spare receiving capacity of around 1.09mn t in November and 1.05mn t in December across the six terminals. This means available capacity to bring in the equivalent of 18 cargoes in November and 17.5 cargoes in December, based on a 60,000t cargo size.

Beijing has long urged state-controlled natural gas pipeline firms and LNG terminal operators to release information on tariffs and unused capacity to foster increased third-party access to gas infrastructure and create a more open gas market.

PipeChina is expected to control 10 of China's 22 LNG import terminals. It has acquired the majority of these terminals from CNOOC. Three of these 10 terminals are currently under construction and account for around 13mn t/yr of import capacity.

PipeChina currently controls eight LNG import terminals, of which six are operational and two are under construction. It will control a total of 10 terminals with the transfer from PetroChina subsidiary Kunlun Energy of two terminals, one of which is operational while the other is being built. Kunlun is expected to transfer its 6mn t/yr Dalian import terminal that is operational, as well as the 3mn t/yr Diefu North terminal under construction in Shenzhen.

The other terminals that PipeChina owns under construction include the 5mn t/yr Longkou Nanshan and the 3mn t/yr Zhangzhou terminals.

PipeChina will have capacity totalling around 32mn t/yr once the terminals under construction are completed.

The firm was set up as part of oil and gas industry reforms aimed at creating fair and open access to oil and gas infrastructure, as well as increasing transparency and liquidity and competitiveness in the gas market. It signed a handover agreement with PetroChina, Sinopec and CNOOC to take control of their oil and gas infrastructure assets on 30 September.

The sale of assets has given PetroChina the largest stake of 29.9pc in PipeChina, with Sinopec and CNOOC holding 14pc and 2.9pc respectively.

PipeChina LNG terminals
	Previous operator	Import capacity (mn t/yr)	Storage capacity ('000m³)	Regasification tariff (Yn/m³, post-tax)	Spare capacity ('000t)		Status/start-up
					November	December

Beihai	Sinopec	3 (6 after phase 2)	640	0.18	240	240	Operational
Tianjin (FSRU)	CNOOC	2.2 (6 after phase 2)	220	0.30	102	85	Operational
Diefu (Shenzhen)	CNOOC	4	640	0.31	502	502	Operational
Fangchenggang	CNOOC	0.6	60	0.25	26	26	Operational
Yuedong	CNOOC	2 (6 after phase 2)	480	0.26	0	0	Operational
Hainan (Yangpu)	CNOOC	3	40	0.26	219	193	Operational
Longkou Nanshan	CNOOC	5 (12 phase2, 20mn final)	1,320/4,400				Under construction/2022
Zhangzhou	CNOOC	3 (6 after phase 2)	480				Under construction/2021
Pending
Dalian	Kunlun (PetroChina)	6	480				Operational
Diefu North (Shenzhen)	Kunlun (PetroChina)	3	400				Under construction/2022

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