The UAE plans to build an LPG storage and distribution station in China to increase the efficiency of the country’s distribution of LPG to China.
Chinese Ambassador to the United Arab Emirates Husin Bagis recently met with the Minister of Ocean Affairs Coordinator Luhut Binsar Pandjaitan to discuss the Crown Prince of Abu Dhabi Sheikh Mohammad Bin Zayed Al Nahyan The follow-up to my country made the above statement.
“According to the plan, they plan to build an LPG storage and distribution station in China, and have plans to sell LPG directly from China to Abu Dhabi,” he said.
Hu Xin revealed that the liquefied petroleum gas imported from the United Arab Emirates can be stored in storage and distribution stations. Nevertheless, the location of this storage station has not been determined.
The ambassador pointed out that the annual import of LPG in China is about 2 billion US dollars. If there is an LPG storage and distribution station in China, it is expected that the import cost can be reduced because of its larger capacity.
“Every year, China spends about 2 billion U.S. dollars in the UAE. It is an import fee that is not small. If they invest in China, it will reduce China’s import fees,” he said.
Hu Xin continued that China needs to use UAE investment projects that do not require additional labor or equipment.
“This has made China more attractive to investors in Europe, Japan, China, and South Korea, and now there are more meaningful new investors, Abu Dhabi,” he said.
Nonetheless, Hu Xin was not sure whether the construction of the LPG storage and distribution station was undertaken by two large oil and gas companies in Abu Dhabi, Abu Dhabi National Oil Company (ADNOC) or Abu Dhabi Mubadala Development Company (Mubadala).
Previously, ADNOC and North Tamina signed a comprehensive strategic framework (CSF) to explore opportunities for cooperation in all oil and gas business chains, including in the UAE, Indonesia, and other countries.
Through this cooperation, North Tamina and ADNOC will cooperate in the upstream to downstream industries. Potential cooperation projects include the oil and gas upstream industry in the UAE, refineries, petrochemicals, liquefied natural gas, liquefied petroleum gas, aviation fuel, and domestic oil and gas retail.