China Industrial news
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PetroChina to develop Canadian LNG
Joint project set to supply fuel to customers in Asia starting around 2020
PetroChina Co Ltd, the listed arm of China's largest gas producer, announced on
Wednesday that it would jointly develop a proposed liquefied natural gas export facility
in Canada with Shell Canada Ltd, Korea Gas Corp and Mitsubishi Corp.
The proposed LNG Canada project located near Kitimat, British Columbia, will initially
consist of two LNG processing units, each with the capacity to produce 6 million
metric tons of LNG annually, with an option to expand the project to a total of 24 million
tons per year.
According to PetroChina's statement, Shell holds a 40 percent working interest, with
KOGAS, Mitsubishi and PetroChina each holding a 20 percent stake.
Development will start this year and the project is likely to become operational around
2020, pending regulatory approval and investment decisions, the statement said.
The LNG Canada project would include the design, construction and operation of a
gas liquefaction plant and facilities for the storage and export of LNG.
"The plant is built to serve the Asian market," said a source at PetroChina who
declined to be named.
According to the China Industrial Gas Association, China will complete the
construction of 17 LNG terminals during the 12th Five-Year Plan (2011-15), with an
annual capacity of 65 million tons.
The government said last year that it was hoping to double the share of natural gas in
its overall energy mix to 8 percent by 2015, from nearly 4 percent at the end of 2010.
The National Development and Reform Commission is said to have submitted the
blueprint for the natural gas sector under the 12th Five-Year Plan for approval to the
State Council.
According to the plan, China's annual natural gas consumption will reach 260 billion
cubic meters by the end of 2015.
ChinaMarketResearch.com 2012-05-21
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