(Yicai) May 29 -- The competition among liquefied natural gas receiving terminals will intensify as more projects come on stream over the next five years, according to an executive at China National Petroleum Pipeline Group.

LNG receiving terminals should explore new LNG applications in the industrial and transportation sectors, enhance LNG demand by teaming up with new partners, and improve customer loyalty by providing diversified services, such as storage leasing, gasification, transportation, and joint shipping, the CNPPG executive told Yicai at an industry conference yesterday.

Eight new LNG receiving terminals will be commissioned, and three existing ones will complete their expansion projects this year, bringing China's total annual unloading capacity to 190 million tons, the executive noted, predicting that the figure will keep rising to reach 245 million tons in 2030.

LNG receiving terminals should also actively participate in raw gas auctions and LNG presale auctions at regional gas trading centers to optimize resource allocation through market-oriented means and improve their operational efficiency, the executive added.

Founded in December 2019, CNPPG became China's largest LNG receiving terminal operator after taking over the trunk oil and gas pipeline assets and some LNG receiving terminals from the country's Big Three oil companies -- China National Petroleum Corporation, China Petroleum and Chemical Corporation, and China National Offshore Oil Corporation.

"China's LNG receiving terminal business has developed for less than 20 years, and market-oriented operations only began after CNPPG's establishment in 2019," the executive said.

"Compared with Europe and the United States, there is indeed a lack of experience and insufficient measures to address complex situations," they added. "The degree of third-party access to the terminals and their market-oriented operation models still need improvement."

"However, there have been many positive developments recently," said Wang Ran, a natural gas analyst at Zhuochuang Information.

In fact, Abu Dhabi National Oil signed three LNG supply agreements with Chinese enterprises last month, and during the World Gas Conference ended on May 23, several Chinese energy firms inked long-term LNG supply deals with overseas companies, such as BP, Mercuria, and ConocoPhillips.

"These long-term agreements are expected to bring significant changes to the future LNG supply landscape and support the operation of LNG receiving terminals," Wang noted.

Editors: Tang Shihua, Futura Costaglione