For gas stations, expanding to include LNG refueling stations is a crucial direction for business growth, but the process involves complex approvals, construction, and market challenges. Below is a summary of some procedures and processes related to gas station expansion for refueling stations.
I. Key Approval Procedures and Processes
Expanding an LNG refueling station requires approval from multiple departments, with the main procedures and responsible authorities as follows
Please note: The newly released "Administrative Measures for the Planning, Construction, and Operation of Oil and Gas Infrastructure" by the National Development and Reform Commission will take effect onJanuary 1, 2026. The new regulations emphasize that projects must comply with National and provincial plans, and will strengthen oversight offairness and opennessandgas storage responsibilities.Before starting, it is advisable to consult the local development and reform, and housing and urban-rural development departments for the latest specific requirements. Before commencement, it is recommended to consult the local development and reform, as well as housing and urban-rural development departments for the latest specific requirements.
II. Major Issues and Challenges
During the expansion process, apart from complex approval procedures, you will also face the following challenges:
Market and Competitive PressuresDue to LNG price fluctuations, the profit margins of small and medium operators are easily squeezed . Meanwhile, giants like the "two oil giants" are rapidly upgrading gas stations intooil-gas hybrid stations, leveraging integrated industrial chains to create competitive advantages.
High investment and costs: The investment per station is substantial, involving land, specialized equipment (such as LNG storage tanks and submerged pumps), and safety facilities, with a payback period that may extend to 5-8 years
Land and Compliance Thresholds: The project must comply with localgas-specific planning regulations. If existing gas station sites fail to meet updated safety spacing, environmental protection, or other new requirements, expansion may not be possible.
High technical and safety requirements: LNG is a cryogenic liquid at -162°C, requiring specialized techniques for equipment insulation, pipeline thermal compensation, and BOG (boil-off gas) recovery. , with strict construction and operational safety standards.
III. Solutions and Strategic Recommendations
To address the above challenges, you can consider the following aspects:
Thorough preliminary assessment to avoid fundamental risks
Plan First First, confirm with the local planning and construction departments whether your gas station site is within the special urban gas planning scope for gas station distribution . This determines whether the project can be approved.
premise Compliance self-check: Evaluate existing gas station sites in advance to ensure sufficient space for LNG storage tanks, dispensers, and surrounding facilities while maintaining safe fire separation distances requirements.
Optimize Investment and Construction Models
Co-construction and Upgrading: Prioritize transforming and expandingexisting gas stations into integrated oil-gas stations, which is more land-efficient than separate new constructions and may involve relatively simplified approval processes.
Seek Collaboration: Explore possibilities with capable LNG upstream suppliers, logistics companies, or equipment manufacturers Joint Venture Construction to share investment risks and stabilize gas supply
Enhancing Operations and Competitiveness
Lock in gas supply costs: Attempt to sign medium to long-term procurement agreements with LNG suppliers to mitigate the impact of price fluctuations.
Expand comprehensive services: In addition to LNG, consider adding charging stations, convenience stores, and other services to create integrated energy stations and attract diverse customers.
Bind terminal customers: Sign long-term gas supply agreements with local logistics companies and freight fleets to ensure stable sales volume
