ENGIE’s first LNG cargo for Beijing city unloaded in Chinese Caofeidian terminal, aiming to contribute to Beijing city’s gas demand during the winter season
November 25, 2015, the first cargo of LNG provided by ENGIE to Beijing Gas Group, acting as a direct buyer, was unloaded at PetroChina’s Caofeidian LNG receiving terminal.
This shipment was transported by the LNG carrier named GDF SUEZ POINT FORTIN which total storage capacity amounts 154,200 cubic meters.
After unloading, storage and gasification in Caofeidian LNG receiving terminal, the natural gas will be transported to Beijing via Yongtangqin pipeline. This gas is a supplementary source for Beijing City’s winter season, contributing to Beijing city’s gas demand and security of supply during the 2015-2016 heating season.
This delivery is the first case among all Chinese LNG buyers, of third party reception and further transport in pipeline infrastructures and, as such, a clear sign of the steps taken by Chinese Authorities towards open and fair access mechanisms.
This LNG delivery is the result of the contract signed in June 2015 in Paris between Beijing Gas Group and ENGIE under the witness of Chinese Prime Minister Li Keqiang and French Prime Minister Manuel Valls. This agreement is part of the partnership between ENGIE and Beijing Enterprises Group (BEG), carrying out cooperation in LNG and other related fields.
Jean-Marc Guyot, Chaiman & CEO of ENGIE China said: “This is an important milestone of ENGIE’s development in China. Through this LNG supply, we are pleased that ENGIE can contribute to China’s growing demand and efforts towards clean energy.”
ENGIE in China
ENGIE has been present in China for over 40 years. In 2008, ENGIE opened its first representative office in China and started to develop relationship and cooperation with Chinese partners in the energy field such as: natural gas, LNG, gas infrastructure, energy services and engineering services, for projects in China as well as in overseas markets.
In power generation, ENGIE supports joint carbon emissions reduction projects (Clean Development Mechanisms–CDM), while its engineering teams assist in the development of the Taishan EPR and support the development of hydroelectric projects in other countries with Chinese partners.
In natural gas, ENGIE signed a worldwide partnership in 2011 with the Chinese sovereign fund CIC granting the latter a 30% share in ENGIE exploration and production activities. The Group sold 2.3 million metric tons of LNG to the China National Offshore Oil Corporation (CNOOC), with deliveries beginning in 2013, and installed the first floating regasification terminal in China. In 2012, ENGIE also began a cooperation agreement with PetroChina to explore the upstream gas potential in Qatar, then extended the agreement to gas storage in China in 2013 (development support for six sites). The Group currently assists Shanghai Gas Group, a unit of Shenergy Group, for the expansion of one of its LNG terminals.
In energy services, following the signature of an agreement between ENGIE and Chongqing Gas Group, the JV SinoFrench Energy Services Co., Ltd was created in 2010, which is dedicated to the development of CHP/CCHP projects. ENGIE signed in 2014 two major cooperation agreements to develop energy projects in the large Chinese cities: the first one with Beijing Enterprises Group in Beijing and the second one with Shenergy in Shanghai. In January 2015, ENGIE and Sichuan Energy Investment Distributed Energy Systems created a joint venture for the joint development and the operation of Guangan Huixiang Innovation Park Distributed Energy Project, the first Distributed Energy Project in an industry park in Southwest China.
In November 2015, ENGIE signed two major agreements with China Huaneng Group and Beijing Enterprises Group which consider the entire energy value chain: power, natural gas and energy services, with a specific focus on efficient and innovative solutions able to take on the challenges of energy’s transition to a low-carbon economy.
ENGIE develops its businesses (power, natural gas, energy services) around a model based on responsible growth to take on the major challenges of energy’s transition to a low-carbon economy: access to sustainable energy, climate-change mitigation and adaptation, security of supply and the rational use of resources. The Group provides individuals, cities and businesses with highly efficient and innovative solutions largely based on its expertise in four key sectors: renewable energy, energy efficiency, liquefied natural gas and digital technology. ENGIE employs 152,900 people worldwide and achieved revenues of €74.7 billion in 2014. The Group is listed on the Paris and Brussels stock exchanges (GSZ) and is represented in the main international indices: CAC 40, BEL 20, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe and Euronext Vigeo (World 120, Eurozone 120, Europe 120 and France 20).