Shenzhen is offering subsidies to promote its development as a hub for liquefied natural gas (LNG) trading.

The port city in southern China said in a notice from the Shenzhen Development and Reform Commission, that it plans to explore new LNG trading models actively and attract large-size shipping companies and their subsidiaries to conduct business in Shenzhen.

The city will also support the companies to build a self-controlled LNG shipping system and reduce LNG transportation costs.

The city of Shenzhen will offer a reward of up to RMB10m (US$1.39 million) per year for a period of three consecutive years to newly built or purchased large-size LNG carriers that are no older than five years.

The reward will also be extended to SPV companies that offer LNG carrier leasing services in the Qianhai area of Shenzhen.

To improve LNG distribution capacity, Shenzhen will also develop an LNG distribution and multi-model transportation centre and offer up to RMB5 million rewards to those opening up new LNG shipping services departing from Shenzhen along the Pearl River delta.

Finally, the LNG refuelling service providers at Shenzhen port can also have the opportunity to receive financial rewards.