The New Development Bank has approved a €436 million ($511 million) loan for the implementation of the Tianjin Nangang liquefied natural gas (LNG) Emergency Reserve Project by oil and gas company Beijing Gas.
Beijing Gas will over the next five years construct LNG receiving, storage and regasification facilities, and unloading wharves.
The $2 billion project is designed to increase China’s natural gas emergency supply capacity, reduce reliance on coal and ultimately support low-carbon and sustainable development of the economy.
The project will contribute to bridging considerable gaps between natural gas demand and supply in Beijing-Tianjin-Hebei region, where natural gas supply for the peak consumption seasons, such as the winter period, now cannot be ensured.
Beijing Gas will make use of the infrastructure to be developed to reduce coal consumption by 11.90 million tonnes annually, resulting in a considerable reduction in emissions of greenhouse gas emissions.
The utility will also make use of $500 million in funding issued by the Asian Infrastructure Investment Bank to implement the project.
The Project will be implemented over five years by Beijing Gas Group Co. Ltd.