China's Zhejiang Energy to start new regasification terminal in late June - sources

SINGAPORE, June 12 (Reuters) - China's Zhejiang Energy Group is set to start trial operations late this month of a 3 million tonne-per-year liquefied natural gas receiving terminal in east China, the provincial company's first such facility, trade sources said.

The terminal, situated in the city of Wenzhou in Zhejiang province, is operated by Zhejiang Zheneng Wenzhou LNG Co Ltd that is 51%-owned by Zhejiang Energy, 41% by Sinopec Corp and 8% by a local investment firm.

The terminal is set to receive its first LNG shipment around June 20, with commercial commissioning set to begin in August, said two trade sources with knowledge of the matter.

A Sinopec representative confirmed the timing of the first cargo arriving in late June without elaboration.

Zhejiang Energy did not immediately respond to a request for comment.

The terminal is expected to start receiving contractual cargoes secured under a 20-year purchase and supply agreement the Zhejiang group signed with Exxon Mobil in early 2019, a third source said.

The Wenzhou terminal puts the Zhejiang group into China's so-called "second-tier" of LNG players, which are local government-backed city gas distributors that are emerging as new merchants in the global gas market, alongside the country's dominant state traders like PetroChina and CNOOC.

Established in 2001, Zhejiang Energy engages in thermal power generation and piped gas distribution. ($1 = 7.1418 Chinese yuan renminbi) (Reporting by Chen Aizhu and Emily Chow, additional reporting by Beijing newsroom; Editing by Emelia Sithole-Matarise)