Chinese state-owned pipeline network operator PipeChina has established a new subsidiary, the National Pipeline Network Group LNG Company Limited, to integrate and centralize the operations of its liquefied natural gas receiving terminals. The subsidiary was registered in the Tianjin Economic-Technological Development Area (TEDA) on December 26 with a capital of 500 million yuan.

Scope and Scale of Operations

The wholly owned subsidiary will oversee 10 LNG receiving terminals located across China, including in Tianjin, Dalian, Zhangzhou, Longkou, eastern Guangdong, Shenzhen, and Hainan, as well as an emergency repair company. The combined receiving capacity of these terminals is approximately 42 million tonnes per annum, which accounts for roughly 25% of China's total national LNG receiving capacity. Following this integration, the subsidiary will become China's largest specialized LNG terminal operator in terms of both the number of terminals and total receiving capacity.

Strategic Objectives and Services

The registration of the subsidiary is described as a key step in PipeChina's market-oriented reforms of its LNG business and in improving its corporate governance structure. The new company is expected to provide a comprehensive range of services, including:

• LNG storage, regasification, and gas send-out
• Ship-to-ship transhipment
• Full-tank leasing
• ISO tank container handling
• Cold-box services
• Cold-energy utilisation
• LNG truck loading

Recent Context and Developments

The establishment of this subsidiary follows the recent commissioning of PipeChina's Tianjin operations centre in TEDA in November. Concurrently, PipeChina has signed a letter of intent with TEDA to launch the PipeChina Science & Testing Base project.