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CNPC started LNG project in Dalian

By  Zhu Chengpei and Zhang Xiaomin (chinadaily.com.cn)
Updated: 2008-04-18 17:33

China National Petroleum Corporation (CNPC) Friday started the construction of a liquefied natural gas (LNG) project in the port city of Northeast China's Liaoning province.

"The total investment of the project exceeds 10 billion yuan ($1.43 billion). After completion, the annual sales revenue will be over 25.3 billion yuan," said Wang Lixin, general manager of the project.

As CNPC's first LNG project in Northeast China domestically designed and constructed, the project comprises a terminal, a receiving station and gas pipelines. The terminal can accommodate LNG vessels with the carrying capacity ranging from 140,000 to 270,000 cubic meters.

The receiving station covers 24 hectares. It is to be constructed in two phases. The first phase is expected to be put into use at the beginning of 2011. It will supply 4.2 billion cubic meters of natural gas annually.

"The second phase will be started according to the real requirements," said Wang, "Its annual receiving and supplying capacity can reach 7.8 million tons and 10.5 billion cubic meters respectively."

The pipelines are composed of a 389-kilometer-trunk line to Shenyang, a branch line to Dalian, and a branch line to Fushun, all in Liaoning.

According to Wang, the project mainly serves the consumers in Liaoning province by providing natural gas as a clean substitute of coal gas and fuel oil.

"Dalian LNG Project is CNPC's first major LNG project that receives LNG resources from other countries like Qatar and Australia," said Liao Yongyuan, vice general manager of CNPC.

Liao commented that it is of great importance in strengthening China's ability of energy support and energy safety.

"The project will improve the energy consuming structure of our province, which is now mainly a coal consumer," said Liu Guoqiang, vice governor of Liaoning province.

"With the rapid development, we are absorbing more and more energy from other provinces. It is expected that we will need 18 billion cubic meters of natural gas in 2010. Eight billion must be imported from outside," said Liu.

"The project will also accelerate Dalian's progress in building an international shipping center of Northeast Asia, said Xia Deren, mayor of Dalian.