(Yicai Global) Oct. 31 -- Hubei-based natural gas firm Bestsun Energy Co. [SHA:600681] plans to build a liquefied natural gas terminal in the northeastern province of Liaoning thanks to its prime location on the Bohai Sea.

Bestsun signed a deal with Suizhong County government in Liaoning, the firm said on Oct. 30. Construction of the project will be divided into three phases, the first of which will see the company invest CNY3.5 billion (USD526.79 million) to build the terminal, which will have an annual turnover volume of 2.6-million-tons and include a dock and two 160,000-cubic-meter storage cylinders.

In the second and third phases, Bestsun will expand the capacity of the terminal to give million tons a year and build another two 160,000-cubic-meter cylinders. The company will also construct supporting pipelines to export the gas and carry out work in the industry's downstream sector. The statement did not disclose proposed investments for the latter phases.

Bestsun believes the firm will generate annual revenue of CNY12 billion once it reaches its target output, bringing in over CNY1 billion in tax revenue for Suizhong.

Suizhong County is located in a key area on the Bohai Sea and in the Northeast Asia Economic Circle. China is currently experiencing a rise in demand for liquefied gas, and Bestsun hopes to fill that need by importing foreign gas resources into the country, offering a guaranteed gas supply to northern China, the company added.