PetroChina Kunlun Gas plans to build a 6,000-cu-m LPG terminal in Guiyang City of Southwest China's Guizhou Province, an informed source told C1.
If everything goes smoothly, construction would be complete at the end of this year, according to the source.
Kunlun Gas would be able to enter Guizhou market more quickly and efficiently by building terminal of its own, market sources denoted. It would also be conducive to release of LPG inventory pressures of PetroChina's refineries in Northwest China, which were major LPG suppliers for Southwest China, the sources believed.
Currently, there are three LPG wholesalers in Guizhou, with LPG storage capacities totaling about 10,000 cu m.
LPG demand in Guizhou was about 120,000 cu m per annum.
Kunlun Gas has already built LPG reserve storages in Chengdu and Chongqing cities and rent a terminal in Yunnan Province, all of which were in Southwest China.
Southwest China's LPG consumption reached 800,000mt in 2010, C1's data showed.
Kunlun Gas has so far basically taken over LPG wholesale business of refineries subsidiary to PetroChina in Northwest China.
