PipeChina opens 2025 LNG terminal slot bidding to boost market access

China's National Pipeline Network Group (PipeChina) has launched its annual bidding process for LNG terminal access, offering both yearly and medium- to long-term service slots across 10 terminals, PipeChina LNG Terminal Management Company (PLTMC) said on its official WeChat account late March 4.

The initiative aims to foster market competition and secure energy supplies, aligning with Beijing's broader strategy to liberalize energy infrastructure and ensure fair third-party access.

PipeChina currently operates eight existing LNG receiving terminals -- Dalian, Tianjin, Zhangzhou, Yuedong, Shenzhen, Hainan, Beihai and Fangchenggang -- alongside two new terminals -- Longkou and Diefubei -- which are still under construction.

The eight operational terminals are accepting bids for annual service slots from April 2025 to March 2026, as well as medium- to long-term slots ranging from three to 20 years, starting as early as April 2025, PLTMC said.

However, the Longkou and Diefubei LNG terminals will only offer presale slots starting in July and October 2025, respectively, according to PLTMC. This suggests that PipeChina's two new terminals are expected to begin operations in July and October.

Additionally, PipeChina is offering LNG bonded storage access at its Dalian, Tianjin and Hainan LNG terminals. Dalian has one bonded storage tank with a capacity of 160,000 cu m, Tianjin has one bonded tank with a 220,000 cu m capacity and Hainan has two bonded tanks, each with a capacity of 160,000 cu m, PLTMC said.

These bonded storage facilities enable bonded transshipment for reexport or domestic distribution, effectively lowering import costs, according to trade sources.

Applicants can submit their applications to PipeChina over March 4-17, after which PipeChina will review them over March 18-19 and notify applicants of the results by March 21. Those awarded terminal slots must sign the terminal use agreements (TUA) by March 31, PLTMC said.

To participate, applicants must have PipeChina's shipper certification. New entrants are required to provide a deposit of Yuan 2 million, which is refundable after the contract is signed, although the deposit may be fully forfeited in case of defaults or failure to sign contracts, according to PLTMC.

TUA holders will receive a 45-day temporary storage fee waiver, with charges after the free period varying depending on the contract type and season, PLTMC said.

PLTMC said the allocation of terminal slots will prioritize facilitating customers' access to long-term, reliable and stable LNG resources while also improving the overall utilization of PipeChina's infrastructure, including terminals and pipelines.

PipeChina will give preference to applicants with upstream LNG procurement channels and downstream end-users, as well as those applying for medium- to long-term slots, PLTMC added.