BEIJING- Private Chinese gas distributor ENN Group is expected to launch the second phrase of its liquefied natural gas (LNG) terminal project in eastern port city Zhoushan in the first half of this year.

The second phrase, with total investment at 2.411 billion yuan ($373.36 million), will expand annual LNG receiving and processing capacity to 5 million tonnes from current 3 million tonnes, according to a statement on Wednesday from local government at Zhejiang Free Trade Zone, where the terminal locates.

ENN will also add two LNG storage tanks, with capacity of 160,000 cubic metres each, on top of the existing two same-sized tanks.

China's city gas firms beyond national energy giants are leading the investment in LNG terminals as Beijing opens up the sector to more private participation.

($1 = 6.4576 Chinese yuan renminbi)

(Reporting by Muyu Xu and Chen Aizhu, editing by Louise Heavens) ((muyu.xu@thomsonreuters.com; +86 10 56692117;))