China LNG Group has entered into a framework agreement with Sinopec Fuel Oil Sales Corporation Limited (Shanghai branch) to cooperate in the development of LNG stations and the application of LNG heavy-duty trucks in the People’s Republic of China. The facilities are expected to be operational within 6 months of obtaining governmental approval.
Both parties intend to select two highways – Huhangyong Highway (151 km) and Hangzhou Highway (112 km) – as a pilot scheme for adding LNG refueling facilities in existing stations along these two routes. Afterwards, Sinopec will increase the number of LNG stations based on the demand and development of the company’s LNG businesses.
Under the agreement, Sinopec will communicate with relevant government departments for handling application procedures in relation to adding LNG refueling facilities in existing stations. It will be responsible for the project design, construction, installation of equipment, and testing. It will also ensure the adequate supply of LNG and provide a preferential price to China LNG, once the fuel consumption reaches a certain level.
Moreover, China LNG is responsible for the aggressive expansion of the LNG vehicle market, provision of funding to its customers to convert their truck fleets to LNG, and the provision of finance leasing services for customers wishing to purchase new LNG-powered heavy-duty trucks. China LNG also plans to directly and indirectly invest in no less than 100,000 and 200,000 heavy-duty trucks, respectively, by the end of 2020.
Source: China LNG Group