Pipe­line to boost nat­u­ral gas sup­ply

Busi­nesses op­er­at­ing in Pearl River Delta area will ben­e­fit

China Daily (Hong Kong) - - BUSINESS - By DU JUAN in Guangzhou du­juan@chi­nadaily.com.cn

China’s im­ported liq­ue­fied nat­u­ral gas and do­mes­ti­cally pro­duced re­sources in the South China Sea will in­creas­ingly be sup­plied to the en­er­gy­hun­gry Pearl River Delta area af­ter the com­ple­tion of a pipe­line in Guang­dong prov­ince.

China National Off­shore Oil Corp, the coun­try’s largest off­shore oil and gas ex­plorer and big­gest LNG im­porter, said on Thurs­day it has com­pleted the key con­trol­ling pro­ject of the sec­ond phase of the pipe­line. The whole pro­ject will be fin­ished by the end of the year.

“It is ex­pected to de­liver about 4 bil­lion cu­bic me­ters of nat­u­ral gas pro­duced from CNOOC’s Li­wan 3-1 block in the South China Sea and 3 bil­lion cu­bic me­ters of im­ported LNG from Zhuhai re­ceiv­ing ter­mi­nal an­nu­ally to the cities of Zhong­shan and Zhuhai in Guang­dong prov­ince,” said Wang Ge, gen­eral man­ager of Guang­dong Nat­u­ral Gas Grid Co Ltd, owned by CNOOC Gas & Power Group.

Around 60 per­cent of the to­tal 7 bil­lion cu­bic me­ters of nat­u­ral gas will be used for power plants. The rest will be sup­plied for res­i­den­tial use, ac­cord­ing to Wang.

Dur­ing the 12th Five-Year Plan pe­riod ( 2011- 15), the com­pany plans to build a new nat­u­ral gas pipe­line of about 2,000 kilo­me­ters, en­abling an an­nual nat­u­ral gas de­liv­ery ca­pac­ity of 60 bil­lion cu­bic me­ters in the prov­ince.

By the end of 2020, the to­tal length of the new nat­u­ral gas pipe­line will be about 2,768 km.

Wang said to­tal in­vest­ment in the Guang­dong nat­u­ral gas pipe­line is 50 bil­lion yuan ($8 bil­lion). Pre­lim­i­nary work is un­der way on th­ese later phases of the pipe­line.

“Af­ter com­ple­tion, to­gether with China’s West-to-East nat­u­ral gas trans­mis­sion pipe­line, Guang­dong’s nat­u­ral gas pipe­line will help to form a com­pre­hen­sive net­work within the prov­ince,” said Wang.

Guang­dong used 10.6 bil­lion cu­bic me­ters of nat­u­ral gas in 2012, 82 per­cent of it from CNOOC. The rest was sup­plied mainly by PetroChina Ltd, the coun­try’s largest nat­u­ral gas pro­ducer.

“South China has be­come a rapidly de­vel­op­ing emerg­ing mar­ket for nat­u­ral gas since 2005,” said Li Li, a se­nior an­a­lyst at ICIS C1 En­ergy, a Shang­hai-based en­ergy in­for­ma­tion con­sul­tancy. “When there is more sup­ply, there will be more ap­pli­ca­tion fa­cil­i­ties for more con­sump­tion. In Guang­dong, the users are mainly power gen­er­a­tors. Its use in the auto and chem­i­cal in­dus­tries is still at a very low level.”

She said un­like the north­ern China re­gion, which is heav­ily de­pen­dent on do­mes­tic pro­duc­tion, the nat­u­ral gas sup­ply in south­ern China is rel­a­tively sta­ble be­cause of im­ports.

So far, CNOOC has four LNG fully op­er­a­tional re­ceiv­ing ter­mi­nals — in Guang­dong, Fu­jian, Shang­hai and Zhe­jiang. They have an an­nual re­ceiv­ing ca­pac­ity of more than 18 mil­lion met­ric tons in to­tal.

An­other four ter­mi­nals in Zhuhai, Tian­jin, Hainan and Shen­zhen will be put into op­er­a­tion within the next two years. By then, CNOOC will have an an­nual re­ceiv­ing ca­pac­ity of 30 mil­lion met­ric tons.

Last year, China’s im­ported LNG amounted to 14.5 mil­lion met­ric tons, 74 per­cent of which was im­ported by CNOOC.

The Myan­mar-China nat­u­ral gas pipe­line started de­liv­er­ies on Sun­day af­ter three years of con­struc­tion, help­ing to di­ver­sify the coun­try’s en­ergy im­port chan­nels.

The 793-kilo­me­ter pipe­line starts at Kyaukpyu on Myan­mar’s western coast and en­ters south­west­ern China at Ruili in Yun­nan prov­ince.

The owner of the pipe­line, PetroChina, said a par­al­lel oil pipe­line, ex­pected to de­liver oil by the end of this year, is 94 per­cent com­plete.

Com­ple­tion of both pipe­lines will bring 22 mil­lion met­ric tons of crude oil and 12 bil­lion cu­bic me­ters of nat­u­ral gas an­nu­ally into China.

The oil pipe­line will be­come China’s fourth im­por­tant im­port route, join­ing com­pleted pipe­lines from Kaza­khstan, Turk­menistan and Rus­sia.

At present, China’s nat­u­ral gas con­sump­tion ac­counts for 5.5 per­cent among its pri­mary en­ergy mix­ture, 18.4 per­cent­age points lower than the global aver­age level.

To cope with cli­mate change and re­duce car­bon emis­sions, the govern­ment set a tar­get to in­crease nat­u­ral gas con­sump­tion to 8.3 per­cent of the en­ergy mix­ture by 2015.

YU FANG­PING / FOR CHINA DAILY

China National Off­shore Oil Corp, the coun­try’s largest off­shore oil and gas ex­plorer, said on Thurs­day it has com­pleted the key con­trol­ling pro­ject of the sec­ond phase of the pipe­line. The whole pro­ject will be fin­ished by the end of the year.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.