China’s Sinopec group says by 2020 its goal is to more than double its receiving capacity of LNG and increase its domestic shale gas production by two-thirds. Sinopec photo.
Sinopec adding new LNG terminals on China’s east coast
Sinopec, a Chinese oil and gas company, says it plans to more than double the receiving capacity of LNG in the coming six years and increase its domestic shale gas output by two thirds by 2020.
According to Reuters, Sinopec says it plans to boost its clean fuel production to amount to half of its total energy supply by 2023.
Also by 2023, the Beijing based company says it will have 60 billion cubic meters (bcm) of natural gas supply capacity, which will be comprised of imports and domestic production. In 2017, the company produced 27 bcm of gas.
Sinopec is planning to add new LNG terminals along the east coast of China. The facilities will handle a total of 26 million tonnes annually by 2023, significantly higher than the current 9 million tonnes which includes capacity at the newly opened Tianjin LNG terminal.
“We are going to expand (Qingdao) Dongjiakou terminal to 8 million tonnes and then 10 to 12 million tonnes by phases, same with Tianjin,” according to Dai Zhaoming, the group’s head of development and planning. He added that these expansion projects will only need local authorities’ approval.
Dai added that Sinopec is close to formally approving a plan to build a new LNG terminal in the eastern Chinese province of Zhejiang.
Along with boosting LNG imports, Sinopec will increase its domestic shale gas business. A new discovery in the Weirong block in southwestern Sichuan province should add 10 bcm of shale gas production by 2020, according to Sun Huanquan, general manager of the company’s oilfield development division.
Sinopec’s Fuling shale gas field in southwest China produced just over 6 bcm in 2017.
The company’s plans also include building 1,000 natural gas filling stations by 2023.
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