China’s Ordos Xinsheng delays LNG plant start-up to late August

22 August 2012 09:17  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Ordos Xinsheng Natural Gas Development has delayed the start-up of its 600,000 cbm/day liquefied natural gas (LNG) plant at Ordos in Inner Mongolia to late August from July originally, a company source said on Wednesday.

The delay is partly attributable to weak demand, the source added.

The company is building a second 600,000 cbm/day plant as part of the 1.2m cbm/day Phase 2 project at the site, he said.

The first phase involved a 150,000 cbm/day plant, which came on stream in December 2010, according to the source.

The company also plans to start building a 2m cbm/day plant at the same site in the third phase in September, bringing its total production capacity to 3.35m cbm/day, the source added.

Feedstock gas for all the plants will be supplied by PetroChina Changqing Oil Field and the LNG output will mainly be sold to provinces such as Shandong and Liaoning, according to the source.

“We are considering supplying output from the second and third phases to gas-fuelled power plants in south China, or we may authorise the distribution to Shenzhen Dapeng LNG Marketing,” the source added.

Shenzhen Dapeng LNG Marketing is a major LNG trader in south China.

Ordos Xinsheng Natural Gas Development is largely engaged in the investment, construction and management of gas pipeline networks at Ordos.

By: Jane Han

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