CIMC unit fu­els key LNG project

China Daily (Hong Kong) - - BUSINESS - By ZHONG NAN zhong­nan@chi­

CIMC ENRIC Hold­ing Ltd will de­liver two liq­ue­fied nat­u­ral gas stor­age tanks in 2018, with a ca­pac­ity of 160,000 cu­bic me­ters each, to its client in Zhoushan, Zhe­jiang prov­ince, the com­pany said on Mon­day.

This is part of the coun­try’s first project to use LNG to fuel in­ter­na­tional ves­sels. The de­sign, pro­cure­ment and con­struc­tion work will be com­pleted by Nan­jing Yangzi Petro­chem­i­cal De­sign En­gi­neer­ing Co Ltd and Ger­many­based TGE Gas En­gi­neer­ing GmbH, two sub­sidiaries of CIMC ENRIC.

The com­pany said they com­pleted the tank body con­struc­tion, in­clud­ing the tank wall and in­ner tank for its client — Lang­fang-based ENN Group this week.

Sun Hongli, deputy gen­eral man­ager of CIMC ENRIC and man­ag­ing direc­tor of TGE, said that even though China’s coastal LNG re­ceiv­ing fa­cil­i­ties and in­land LNG plant en­coun­tered over­sup­ply this year, the grow­ing trend of LNG im­ports hasn’t changed in the long term, thanks to the pro­mo­tion of en­vi­ron­men­tal poli­cies and grad­ual open­ing up of the nat­u­ral gas mar­ket.

“We there­fore ex­pect that the price reg­u­la­tory mech­a­nism can be formed by 2020 and the in­dus­try will ex­pe­ri­ence a boom,” said Sun.

Two LNG tanks for the ENN (Zhoushan) LNG re­ceiv­ing ter­mi­nal are lo­cated in the marine in­dus­try clus­ter zone of the Zhoushan Archipelago New Area.


The to­tal in­vest­ment in this project is 10 bil­lion yuan ($1.44 bil­lion). The project is di­vided into three phases. When com­pleted and put into op­er­a­tion, the an­nual LNG han­dling ca­pac­ity will reach 10 mil­lion cu m.

China’s LNG im­ports ac­count for more than 30 per­cent of do­mes­tic con­sump­tion. As global nat­u­ral gas trade vol­ume reached 1 tril­lion cu m in 2015, more than 40 per­cent of the global nat­u­ral gas trade de­pends on marine LNG trans­porta­tion.

“Boosted by poli­cies for re­plac­ing coal and oil by gas, there is still big room for de­vel­op­ment for China’s nat­u­ral gas sec­tor,” said Sun.

Ac­cord­ing to, a Shen­zhen-based con­sult­ing plat­form, China’s nat­u­ral gas im­port vol­ume via marine LNG trans­porta­tion is ex­pected to reach or ex­ceed 40 bil­lion cu m over the next five years.

“The global en­ergy glut and the slug­gish econ­omy will con­tinue to drive down LNG prices, which means that im­ports of the su­per­cooled fuel are cheaper than do­mes­tic pro­duc­tion,” said Zhang Yong, a pro­fes­sor spe­cial­iz­ing in en­ergy se­cu­rity at Nankai Uni­ver­sity in Tian­jin.

“China’s LNG im­ports and re­lated in­fra­struc­ture fa­cil­i­ties, in­clud­ing small and medi­um­sized LNG car­ri­ers, truck tankers and spe­cial­ized trains, will surge in the long term amid mount­ing pres­sure caused by air pol­lu­tion,” Zhang said.

China cur­rently op­er­ates more than 10 LNG re­ceiv­ing ter­mi­nals and there are nearly 20 fa­cil­i­ties ei­ther un­der con­struc­tion or be­ing planned, ac­cord­ing to in­for­ma­tion from Shang­hai Oil and Gas Trad­ing Cen­ter, a na­tional level oil and gas trad­ing plat­form.

share of im­ported liq­ue­fied nat­u­ral gas in China’s LNG con­sump­tion

With the de­liv­ery of 67,000 met­ric tons of liq­ue­fied nat­u­ral gas to Guang­dong prov­ince on Sun­day, China Na­tional Offshore Oil Corp has im­ported more than 100 mil­lion tons of LNG in the past 10 years, ac­count­ing for 80 per­cent of the coun­try’s to­tal im­ports.

As China, the world’s big­gest en­ergy con­sumer, is rais­ing the per­cent­age of clean en­ergy be­ing used in or­der to re­duce emis­sions, CNOOC is eye­ing LNG as an­other pil­lar in­dus­try af­ter oil.

The com­pany’s gas pro­duc­tion ac­counts for 18 per­cent of the com­pany’s to­tal, and grad­u­ally rise to around 20 per­cent in the near fu­ture.

Ac­cord­ing to the com­pany, to­tal LNG im­ports are equal to 140 bil­lion cu­bic me­ters of nat­u­ral gas and 130 mil­lion tons of crude oil, one-fourth of the coun­try’s oil con­sump­tion in 2015.

The con­sump­tion of the nat­u­ral gas has helped re­duce car­bon diox­ide by 380 mil­lion tons, sul­fur diox­ide by 3.1 mil­lion tons, ni­tro­gen ox­ide by 27.5 mil­lion tons and dust by 1.75 mil­lion tons.

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