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CNGC Selected B&V for LNG Facility in Rural China

Source: www.gulfoilandgas.com 5/6/2010, Location: Asia

China Natural Gas Co. Ltd, (CNGC) selected Black & Veatch and Chemtex to design and build a liquefied natural gas (LNG) facility that will generate over 700 tonnes/day of LNG for a variety of fuel uses. It will provide area residents and industries with a cleaner and more economical fuel source for transportation, as well as industry and home use. This marks the eighth LNG facility that Black & Veatch and Chemtex have developed in China since 2005. This plant will bring the total clean fuel capacity provided by Black & Veatch to over 5,000 tonnes/day.

“Bringing this updated infrastructure helps stabilize an area that was damaged by the earthquake in 2008,” said Qian Guozhu, General Manager of China Natural Gas Guangyuan Co. Limited. “The new plant will create approximately 100 jobs. In addition, CNGC is building 20 LNG gas stations for public transportation and bus fuel and 10 mobile LNG stations resulting in additional jobs for area residents.”

The facility will provide natural gas supplies to China’s West to East gas pipeline during peak usage times or when demand for natural gas is at its highest, usually during cold winter months. LNG from the facility also will be transferred by truck to areas where there is limited or no natural gas infrastructure, reducing the need for diesel and coal.

LNG is not only considered as a clean, safe, and highly-efficient energy source, but is also expected to drive the development of a larger industry value chain in China. New LNG projects will facilitate the growth of related equipment and facilities, such as liquefying equipment, storage equipment, containers for transportation, as well as other accessories.

“As the eighth project we’ve developed in the area, we have a keen awareness of how it is improving the quality of life of the people who live there,” said Robert Wojnarowski, Black & Veatch’s Regional General Manager.

“Adding this infrastructure benefits the region on many levels. China is demonstrating the economic viability of using LNG as a clean, portable and reliable fuel source”,” said Brian Price, Vice President of LNG technology at Black & Veatch. “It provides significant environmental benefits while being less expensive than diesel or other hydrocarbon fuels.”

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