CNPC's First Large-Scale LNG Project Begins Operations in Sichuan

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Researched by Industrial Info Resources China (Beijing, China)--China National Petroleum Corporation's (CNPC) (Beijing) Guang'an liquefied natural gas (LNG) project, which is CNPC's first large-scale LNG project, was officially put into operation in Guang'an City of Southwest China's Sichuan province on April 21. Jiemin Jiang, the chairman of the CNPC; Jiping Zhou , the president of the CNPC; and Wenhua Chen , the deputy governor of Sichuan province, among other leaders and representatives, attended the ceremony.

CNPC's Guang'an LNG plant, located at the Xinqiao Chemical Industry Park in the Guang'an Economic and Development Zone, is invested by China Natural Gas Corporation Limited (Chengdu, Sichuan), a subsidiary of Kunlun Energy Limited (HK:00135) (Hong Kong), a flagship company of the CNPC listed on the Hong Kong exchange. CNPC Southwest Oil and Gas Company, another subsidiary of the CNPC, is responsible for the supply of gas, as well as production and technical service for the project.

The project is adopted with a single-cycle, mixed cold manufacturing process with annual LNG output of 228,000 metric tons in the initial stage. Major products of the project will be used for car fuel, as well as the peak regulation source for urban natural gas supply.

The reason for the CNPC to select its first LNG project in Guang'an is the sound local conditions, according to Jiang. Natural gas occupies a relatively high proportion in the primary energy consumption of the Sichuan-Chongqing region, providing a good market for the project. Successful commissioning of the project will lay a firm foundation for the establishment of an important new energy base for the Chengdu-Chongqing region in Guang'an.

In addition to the LNG project in Guang'an, the CNPC has planned to build 16 new LNG projects in Sichuan, Hebei and the Xinjiang regions. By the end of 2013, these projects will be able to supply 10 million metric tons of LNG to the Chinese market and be further expanded to 15 million metric tons by 2015.

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