Largest Project of LNG Equipment Commenced Construction

Source: 4/25/2012, Location: Asia

The commencement ceremony of the Localization Project of LNG Equipment (with output of 600,000 tonnes per year) in Taian, Shangdong Province (hereinafter referred to as the “Project”) invested and constructed by Kunlun Energy (Shandong) Company Limited, of which Kunlun Energy Company Limited (hereinafter to as the “Kunlun Energy”) is the holding company, was held in Taian. Mr. Zhou Qi, the Assistant of the Mayor of Shandong Province, Mr. Li Hongfeng, the Secretary of Taian Municipal Committee, Mr. Sun Longde, the Vice president of PetroChina Company Limited (hereinafter referred to as the “PertroChina”), Mr. Li Hualin, the Vice president of PetroChina Company Limited and the Chairman of Kunlun Energy Company Limited, Mr. Jiang changliang, the Chief Executive Officer of Kunlun Energy Company Limited, and other leaders attended the commencement ceremony.

The Project is the first LNG Project with the completely independent intellectual property right and the largest production capacity of single train LNG in China up to date, and also it is the largest LNG plant commenced construction by Kunlun Energy. The Project locates in Fanzhen Industrial Zone of Taian City, Shandong Province, which will be completed at the end of 2013 and will has the conditions to put into operation. Upon operation, the LNG processing capacity of the facility will reach 2.6 million cubic metres per day, which can provide 600,000 tonnes of LNG per year for the surrounding areas.

According to Mr. Qian Zhimin, the Deputy Director of National Energy Administration, the Project can be treated as a support project of speeding up the promotion of localization of large LNG equipment technology conducted by National Energy Administration. The Project which acts as the first natural gas liquefaction facility with independent technology, domestic equipment and the largest scale in China, could completely achieved the localization of large natural gas liquefaction process, core technology and major equipment. This will have a great significance for breaking monopolization of foreign technology, guarantee national energy safety and improving the manufacturing level of national equipment.

Mr. Sun Longde, the Vice president of PetroChina stated in his speech that the Project is one of the important measurement to speed up the promotion of self-reliance and localization of equipment manufacturing as well as ensure the safety supply of national energy and it marked that PetroChina has made a solid step towards the field of LNG technology and will step towards a deeper and broader direction, so as to provide a solid foundation for the development of future LNG complete equipment in terms of its scale and large-sized trend in China.

When hosting the commencement ceremony, Mr. Li Hualin, the Vice president of PetroChina and the Chairman of Kunlun Energy, mentioned that Taian LNG Project will make a satisfactory technological reserve in terms of improvement of Chinese core competitiveness in LNG area, protection of national energy safety and expansion to overseas resource market according to the deployment of National Energy Administration, so as to comply with the plan target of energy saving and emission reduction in the “Twelfth-five" period of China, greatly expand the application of the clean and high efficient energy and facilitate the economy development in Shandong Province.

As the first large LNG plant in Shandong, Taian LNG Project will contribute significantly to relieving the contradiction between energy supply and demand in Shandong, supporting the construction of “Blue Economic Zone” and speeding up the full development of Shandong Province. Currently, there are nearly 300 buses use LNG as the engine fuel in Taian City, which has significantly reduced the pollution emission and operation cost and has strengthened the confidence of Taian City in achieving a diversified energy supply.

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