Rudong facility targets annual LNG trading of 6 million tonnes when completed
Key Facts
The Jiangsu LNG facility in Rudong is targeting annual trading of 6 million tonnes when completed, alongside peak regasification capacity of 60 million cubic metres a day, according to the Nantong government. This comes amid a report of an understanding to supply gas to China, but details of the agreement, its duration and volume could not be verified from a credible public announcement. Source materials described the understanding as conditional on completing sale and purchase agreements, rather than a final contract. The facility’s figures therefore remain indicators of the project’s planned capacity, not current supplies or confirmed shipments. The government said the project plays a role in supporting Jiangsu’s strategic gas reserves and strengthening regional energy security.
At full operation, the facility will include four tanks with a total capacity of 800,000 cubic metres, according to the Nantong government. This storage capacity places the project among large LNG receiving infrastructure, while daily regasification capacity of 60 million cubic metres would allow shipments to be converted into gas for domestic use. The government says the project also aims to improve Jiangsu’s energy mix and broaden the diversity of its gas supply network. The importance of this infrastructure is linked to securing supplies in an industrial region, according to the government’s account of the project’s role. Available information did not provide a date for when the facility would actually begin operating.
In February 2025, the Nantong government said 75% of construction had been completed, with the project expected to be finished by the end of that year. It said total investment amounted to 7.72 billion yuan, equivalent to 1.06 billion dollars in the government’s statement. The update offers a picture of the project’s progress at the time, but does not confirm that the facility subsequently entered operation or reached its target capacity. Annual trading, storage and regasification figures remain contingent on the project reaching full operation. Available information also contained no more recent update on construction status.
The plans come as China’s LNG imports are expected to recover in 2026 after declining the previous year. Analysts polled by Reuters forecast growth of between 3% and 10%, taking imports to about 70.5 to 75.5 million tonnes. Reuters said even the higher estimate would remain below the 2024 level. Imports fell 10% in 2025, a rare decline attributed to a mild winter and weak industrial demand. The U.S. Energy Information Administration also estimated that China’s imports fell 15% in 2025, as Asia’s LNG imports declined 4% compared with 2024.
The market backdrop also points to a contraction in global supplies during 2026. The U.S. Energy Information Administration said the closure of the Strait of Hormuz since 28 February had cut about 20% of global LNG supplies, as Asian and European buyers compete for cargoes available on the spot market. In this context, TotalEnergies Chief Executive Patrick Pouyanné said Europe would not face a gas shortage this winter, but would pay more to ensure supplies were sufficient. He added that Europe was competing with Asia for LNG cargoes. This backdrop remains relevant to China’s efforts to secure supplies, but does not in itself establish the terms of the understanding cited in the 4 November report.
At the company level, TotalEnergies’ total LNG sales reached 23.1 million tonnes in the first half of 2026, compared with 21.2 million tonnes in the same period of 2025, an increase of 9%, according to its filing with the U.S. Securities and Exchange Commission. Over the same period, hydrocarbon production allocated to LNG fell 9% quarter on quarter, which the company attributed mainly to a production shutdown in Qatar linked to the Middle East conflict. These figures provide context on the company’s activity in the LNG market, but do not specify the volume of any supply to the Chinese group. The company’s shares, listed under ticker TTE, closed at 92.70 dollars in the 3 November 2026 session, according to EL7 data. Available information does not include the share’s movement in the session when the report was published.