NDB Board of Directors approved Beijing Gas Tianjin Nangang LNG Emergency Reserve Project
On March 9, 2021, the Board of Directors of the New Development Bank (NDB) approved a loan of EUR 436 million (equivalent to RMB 3.4 billion) to the People’s Republic of China for Beijing Gas Tianjin Nangang LNG Emergency Reserve Project.
Liquefied natural gas (LNG) receiving, storage and regasification facilities, as well as an unloading wharf will be constructed under the Project.
The objective of the Project is to increase natural gas emergency supply capacity, reduce reliance on coal and ultimately support low-carbon and sustainable development of the regional economy. The Project will contribute to bridging considerable gaps between natural gas demand and supply in Beijing-Tianjin-Hebei region, where natural gas supply for the peak consumption seasons, such as the winter period, now cannot be ensured. Moreover, the Project is also expected to generate a considerable positive health impact.
The Project is expected to reduce coal consumption by 11.90 million tonnes annually, resulting in a considerable reduction in emissions of CO2, SO2, NOx and particulate matters in the Beijing-Tianjin-Hebei region.
The Project will be implemented over five years by Beijing Gas Group Co. Ltd.
The total cost of the Project is estimated at RMB 13.8 billion. The NDB will finance EUR 436 million (equivalent to RMB 3.4 billion) or about 25% of the total cost. Asian Infrastructure Investment Bank (AIIB) has also provided USD 500 million (equivalent to RMB 3.3 billion) to the project.
The NDB was established by Brazil, Russia, India, China and South Africa to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development. According to the NDB’s General Strategy, sustainable infrastructure development is at the core of the Bank’s operational strategy for 2017-2021. The NDB received AA+ long-term issuer credit ratings from S&P and Fitch and AAA foreign currency long-term issuer rating from Japan Credit Rating Agency (JCR) and Analytical Credit Rating Agency (ACRA).