Gas Processing is Produced by Gulf Publishing Company

Your source for technology information for the gas processing industry


China's Guangzhou Gas plans LNG import terminal, eyes partnership with Woodfibre

BEIJING (Reuters) -- Guangzhou Gas Group plans to build a 2 MMtpy import terminal for LNG on China's southern coast by 2020, possibly in partnership with Woodfibre LNG, an executive with the Chinese firm said.

Woodfibre Lng Project Small
Photo Courtesy of Woodfibre LNG.

The Guangzhou company agreed in 2016 to buy 1 MMt of LNG annually for 25 yr from an export facility that Woodfibre—a subsidiary of Singapore company Pacific Oil & Gas Ltd—is building on the west coast of Canada in British Columbia.

The proposal for joint investment in the Nansha LNG receiving terminal at Guangzhou port reflects efforts by LNG buyers and producers to share risks, said Liu Jingbo, deputy general manager of Guangzhou Gas, on Thursday.

Local government-backed Guangzhou Gas is one of China's fast-growing independent players in its LNG sector, outside dominant state giants like China National Petroleum Corp and CNOOC, having emerged over the past few years as a niche gas importer and infrastructure investor.

"We are considering investing in upstream (gas supply) and are also looking to producers to partner in the Nansha terminal," Liu said on the sidelines of an industry conference.

To secure gas beyond the Woodfibre deal for the Nansha terminal, Guangzhou Gas is looking for more flexible supplies under shorter terms, like three or five years, said Liu.

Guangzhou Gas supplies some 90% of the city's gas demand, with consumption forecast to more than double to 3.5 Bcm a year in 2020 from current levels, driven by industrial, commercial and power sectors, said Liu.

Liu said his company also has plans to branch into natural gas trading rather than just being a buyer and distributor.

Backed by Indonesian billionaire Sukanto Tanoto's RGE Group, parent of Pacific Oil & Gas, Woodfibre LNG is an often overlooked front-runner in the race to build Canada's first LNG export terminal. More than a dozen projects have been proposed along British Columbia's coast.

Reporting by Chen Aizhu; Editing by Tom Hogue


Copyright © 2018. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo

FEATURED COLUMNS

Editorial Comment
-Adrienne Blume
At CERAWeek by IHS Markit, held in Houston in March, IEA Director Fatih Birol said that the world would soon see a major second wave of shale gas production from the US in response to higher energy prices and growing demand from India and China.
Regional Focus
-Shem Oirere
Mozambique and Tanzania hold an estimated 180 Tft3 and 57 Tft3 of proven natural gas reserves, respectively.


Maximize Profitability with Advanced Analytics at Natural Gas Processing Plants

Register Now

Incorporating economic data into process modeling is key to optimizing operations and maximizing profits at gas processing plants. However, maintaining optimal operations are often challenging due to changing market dynamics, contract structures and increasing process flexibility. Today, gas processors are leveraging Predictive Control and First Principles models to accurately determine and control the optimal operating targets in real time based on the most current plant conditions and profitability, optimizing recovery of natural gas liquids. Learn how real-time analytics, combined with decision support tools, empower companies to:
•Improve processing margins by up to 5%
•Maximize NGL production through improved availability and optimized process conditions
•Improve compositional control to operate closer to product specifications

May 22, 2018 10am CDT

Register Now

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2018 Gulf Publishing Company.