A multi-billion-yuan terminal project for green methanol, ammonia, and other liquid chemicals has started construction at Dalian Changxing Island Economic and Technological Development Zone, marking a major step in building a hydrogen-based energy hub for Northeast Asia. Overseas buyers of green methanol, ammonia, and related chemicals should monitor this development as it signals new maritime logistics capacity and potential supply-chain integration for the region.
Project overview
On August 30, 2024, a joint venture among Dalian Xizhongdao Development Group Co., Ltd., COSCO Shipping Dalian Investment Co., Ltd., and Dalian Menglian Petrochemical Co., Ltd. officially broke ground on a万吨-level green methanol and other liquid chemical berth, a green ammonia and other liquefied hydrocarbon berth, and supporting public utility facilities at Changxing Island (Xizhongdao). The project is designed to handle 10 cargo types including gasoline, jet fuel, acetic acid, methanol, liquid ammonia, and LPG, with an annual throughput capacity of approximately 1.58 million tonnes.
Strategic partnerships and investment
During the groundbreaking ceremony, the Changxing Island Economic and Technological Development Zone Management Committee signed a strategic cooperation framework agreement with Royal Vopak of the Netherlands for the Xizhongdao terminal and storage project. The partnership aims to jointly develop, construct, and operate terminal and storage facilities, enhancing port functions and building a complete green petrochemical industrial base with convenient material supply and robust infrastructure. In June 2024, COSCO Shipping Dalian Investment signed a project agreement with the municipal government and the zone management committee for an integrated chemicals and hydrogen-based new energy storage and transportation project, with a total investment of 24 billion yuan.
Timeline and capacity
The supporting terminal project plans to construct one 10,000-ton liquefied hydrocarbon berth and one 10,000-ton liquid chemical and oil product berth, with a total berth length of 396 meters. Construction is scheduled to be completed and operational by June 30, 2025. The terminal's designed throughput is about 1.399 million tonnes per year, with a design capacity of approximately 1.58 million tonnes per year.
Supply-chain impact
Once completed, the terminal will provide maritime logistics support for COSCO Shipping's chemical and new energy integrated logistics project, the Dingjide project, and the CGN project, meeting the shipping needs of enterprises in the Xizhongdao petrochemical park. This development holds strategic significance for Changxing Island's ambition to become a Northeast Asian green hydrogen-based energy transit, storage, and bunkering center.
What buyers should watch
Overseas importers and distributors of green methanol, ammonia, and other liquid chemicals should monitor the progress of this terminal as it will enhance export and transshipment capabilities from Northeast China. The involvement of COSCO Shipping and Royal Vopak suggests improved logistics reliability and potential cost efficiencies. Buyers should also track the development of the hydrogen-based energy supply chain, including production, storage, trade, and bunkering services, which may open new sourcing opportunities in the region.
Source: Read the original report | Published: August 30, 2024