China CNOOC to add giant new tanks at LNG terminal by end-2023

China absolutely needs some gas storage capability. It appears that its geology does not easily lend itself to underground depleted field storage which would be the cheapest and most efficient but overbuying LNG and then dumping what cannot be used into the market when nobody needs it is very, very expensive. LNG tanks are the step in between – expensive but cheap enough and efficient enough. The big question I have is how China will cover seasonal swings. Thats not impossible with tanks – but it’s hard.

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