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(Yicai Global) Feb. 7 -- Sinopec's liquefied natural gas terminal in Tianjin received first shipment today after entering operation earlier this month as the company looks to ease supply in North and East China.
The CESI Beihai tanker from Australia has successfully berthed, Sinopec, formally China Petroleum & Chemical Corp., said yesterday. From the port, the gas will head to northern regions Beijing, Tianjin, Hebei and the eastern province of Shandong to better balance supply and demand for the energy source.
LNG is widely replacing coal in northern China, which is plagued by pollution. The North and East China have seen demand soar during the winter heating season and is struggling to keep up. The price has surged in several regions and some local authorities have even prevented residents from warming up their homes.
Sinopec invested CNY13.6 billion (USD2 billion) into the Tianjin base, which comprises a terminal, receiving station and trunk pipe for transmission. The firm expects the terminal will accept three million tons (four million cubic meters) of LNG during its first phase.
China National Offshore Oil Corp. has an LNG terminal already operating in Tianjin. Paired with the new station, the city will be able to receive and process 5.2 million tons of gas each year. When the two stations are fully complete, Tianjin will be the biggest LNG recipient in North China.