Northern LNG project starts
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According to the person in charge of the Dalian Municipal Development and Reform Commission, the total investment of the liquefied natural gas project will exceed 10 billion yuan, including three major parts: docks, receiving stations and gas transmission pipelines. The scale of the first phase will be 3 million tons/year, and the annual gas supply capacity will be 4.2 billion cubic meters; Phase II expansion to 6 million tons/year, annual gas supply of 8.4 billion cubic meters. The construction investment of the receiving station was 6.558 billion yuan, covering an area of ​​200,000 square meters. According to industry analysts, this is by far the largest liquefied natural gas project in northern China and another major project related to the country’s energy security.
It is understood that as a clean energy source, liquefied natural gas is not only safe and environmentally friendly, but also more stable than liquefied petroleum gas. Under the combined influence of high international oil prices and increasing attention to environmental protection from all walks of life, LNG projects are rapidly heating up in China. Previously, the first and only LNG terminal in China, the Guangdong Dapeng LNG project built by CNOOC, was put into operation last June. The total planned scale of the project is 15 million tons/year. CNOOC also successively initiated liquefied natural gas projects in Fujian and Shanghai. At the same time, the Rudong LNG Terminal project was jointly approved by PetroChina and Pacific Oil and Gas Co., Ltd. and Jiangsu Guoxin Asset Management Group in Jiangsu. According to another source, CNPC is planning to build a liquefied natural gas receiving station in Qinzhou.
For domestic LNG projects, air supply is the most critical constraint. The reporter noted that the Dalian Municipal Government has not disclosed the gas source after the completion of the project. However, according to news reported by the newspaper, Shell earlier this month announced that it has signed a binding LNG long-term supply framework agreement with PetroChina International Business Co., Ltd. During the 20-year contract period, Shell will sell 1 million tons of liquefied natural gas to CNPC each year. Not only that, on September 6th, PetroChina has signed an annual LNG liquefaction list with an annual output of 2 million tons with Australia’s largest oil and gas producer, Aussie Energy. Odyssey will start from 2013 to 2015 and supply 2 million tons of liquefied natural gas to PetroChina every year for a period of 15 years.
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