China's biggest liquefied natural gas (LNG) importer CNOOC has started building two storage tanks at a receiving terminal in Fujian province for the super-chilled fuel, the official Xinhua news agency reported.
The new tanks are part of a plan to increase the receiving capacity at the terminal in the southeast coastal province to 6.3 million tonnes a year, Xinhua said.
The tanks are each able to store 160,000 m3 of LNG are part of a $3.7 billion in LNG projects that the Fujian government plans for the province to supply city gas to Fuxhou, Putian, Quanzhour, Xiamen and Zangzhou.
CNOOC imported 13 million tons of LNG last year, accounting for nearly 70 percent of the total intake in the world's third-largest LNG importer.
CNOOC has built seven LNG terminals with a total capacity of 28 million tons a year in receiving capacity in China's eastern and southern coastal regions.
The global glut and sluggish economy will continue to drive down prices of LNG, which means that imports of the super-cooled fuel is cheaper than domestic production, experts said. They added that China's LNG imports are expected to rise in the long term amid mounting pressure caused by air pollution.
Since 2008, CNOOC has formed a team to develop the LNG storage technology called full containment LNG storage tank. Just a few countries in the world have the ability to produce such facilities.