18 December 2012 09:25 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Shanxi Energy Industries Group plans to conduct trial runs at its 250,000 cubic metre (cbm)/day gas liquefaction plant at Jincheng in Shanxi province in the first quarter of 2013, a company source said on Tuesday.
The gas liquefaction plant will largely process coal-bed methane (CBM) supplied from the Zhengzhuang CBM block at Qinhui Basin in north China, the source said.
The Zhenzhuang block, which is jointly developed by Shanxi Energy and state-owned PetroChina, is capable of producing 270m cubic metres/year of CBM, the source added.
Shanxi Energy also plans to start building the second phase of the project, which will have a 750,000cbm capacity, at the same site, the source said.
However, the schedule for the second phase has not been confirmed.
The producer has completed the construction of a 2,500cbm storage tank at the Jincheng site and will build three more tanks before the second project is started up, the source said.
This will bring the total storage capacity at the site to 10,000cbm, the source said.
The LNG output from the plant will be distributed to Bohai Economic Rim (BER), Yangtze River Delta as well as Hunan and Hubei provinces, the source said.
The company is currently looking for third-party logistics firms to deliver its LNG cargoes, the source added.
The project is co-funded by Shanxi Energy, Shanxi Coal Import & Export Group (SCIEG) and Shanxi International Electricity Group, according to the source.
Shanxi Energy specialises in the construction and development of energy and coal-based chemical projects.
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