CNPC Begins Construction on Dalian LNG Terminal

---

Researched by Industrial Info Resources (Sugar Land, Texas)--China National Petroleum Corporation (CNPC) (Beijing) has begun construction on its Dalian liquefied-natural-gas (LNG) terminal to receive LNG from Australia and Qatar. The project is located in the heavy industrial region northeastern China in Liaoning Province. CNPC plans to invest $1.43 billion ($1 = 7 RMB) to build a port, the terminal and pipelines.

Phase I of the terminal will be designed to receive 3 million tons per year of LNG, supplying 4.2 billion cubic meters of natural gas. Phase I will cost three-fourths of the total investment and is expected to begin operation in 2011. Phase II will double the capacity of LNG received and gas supplied. The terminal's maximum capacity can reach 7.8 million tons of LNG and 10.5 billion cubic meters of gas every year.

The main gas pipeline will link Dalian and Shenyang cities, both in Liaoning. Total length of the lines will be 475 kilometers of which 86 kilometers will be used in two branches. The main line will connect to the planned Northeast China Gas Transmission Network, which transfers gas to homes and factories.

Dalian LNG terminal is a state-level key project, approved in February by National Development and Reform Commission.

For related information, see April 22, 2008, article - PetroChina, CNOOC Sign LNG Deals with Qatar.

Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services.