China's LNG applications usher in rapid growth

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China Drying News: "PetroChina, Sinopec, and CNOOC have significantly expanded the LNG refueling stations last year and have made breakthroughs in the use of ship fuel applications, which has made China's LNG application enter a period of rapid growth." Yesterday, the Secretary General of the China Industrial Gas Industry Association, Mr. Chungan made the above statement in an interview with reporters. He pointed out that the oil giant, which has always focused on the construction of upstream energy and facilities, strongly intervenes in the terminal market to optimize the application and development of China's LNG industry.

As an intermediate facility for LNG terminal applications, the construction of LNG refueling stations across the country saw a leap-forward development last year, and the performance of the three major oil giants was particularly eye-catching. According to An Xun Sisuwang Energy statistics, as of the end of last year, CNPC has already put into production about 300 LNG refueling stations, and CNOOC has also exceeded 100 seats. Although Sinopec entered the LNG business later, it is actively planning and has built six LNG refueling stations. In May 2011, only more than 100 LNG refueling stations nationwide were added. It is reported that during the "Twelfth Five-Year Plan" period, PetroChina expects to build 5000 new LNG refueling stations, CNOOC will build 1,000 new ones, and Kunlun Energy Co., Ltd. will build 1,000 to 2,000 new ones.

The overwhelming efforts in the construction of refueling stations have greatly improved the LNG terminal sales of the three major groups, enhanced the ability to control the market, and promoted the rapid development of domestic LNG applications. In 2011, LNG sold only 31,000 tons of Kunlun energy. Last year, the sales volume of LNG reached 315,000 tons, which was more than 9 times higher and ranked second in the industry. CNOOC Gas & Power Group also entered the top 10 sales of LNG for the first time.

Chungan said that by the end of the “Twelfth Five-Year Plan”, the number of LNG refueling stations in China will be six times the current number. The increase in refueling stations has enabled the central city to further radiate the surrounding areas, the application of urban public transport has expanded, and intercity passenger cars and heavy goods vehicles have developed rapidly. At present, there are 84 countries around the world that promote natural gas vehicles. In the past 10 years, the number of holdings has grown by an average of 22.9% annually. In 2011, it reached 15.19 million vehicles, and there are nearly 20,000 auxiliary gas stations. The International Association of Natural Gas Vehicles predicts that natural gas vehicles will reach 65 million by 2020, and natural gas vehicles have entered a period of rapid development worldwide. In China, the current LNG vehicle population is about 40,000 vehicles, and it is expected to reach 2.5 million vehicles in 2015. The annual gas consumption will be 15 billion cubic meters.

He pointed out that in addition to LNG vehicles, the application of marine LNG fuel also made breakthroughs last year, further expanding the application of LNG. In October 2011, China National Offshore Oil and Gas Group and the State Fisheries Inspection Bureau signed the "Clean Energy Strategic Cooperation Framework Agreement", which opened a new chapter in the application of LNG as a fuel for fishing boats. In the past year, LNG fuel ships have been put into use in Wuhan, Hubei, Suqian, Jiangsu, Wuhu, Anhui, Guilin, Guilin, and Tianjin Binhai.

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