China: Kunlun Establishes New Company, Plans to Build LNG Plant

Jilin Jigang Clean Energy, of which Kunlun Energy is the holding company, was established last week in Songyuan, Jilin province.

Jigang Company is a joint-stock company jointly funded and established by Kunlun Energy and Jilin Petroleum, and is held as to 51% by Kunlun Energy and as to 49% by Jilin Petroleum. Its total registered capital is RMB300 million.

It is principally engaged in the production, supply and sale of liquefied natural gas (LNG) and compressed natural gas (CNG), pipeline natural gas, the construction and operation of LNG and CNG gas stations, the LNG and CNG vehicle gas refilling and transportation, and the recovery of light hydrocarbon. As the enterprise authorized by CNPC to engage in LNG production and operation exclusively in north-eastern China, it intends to build an LNG liquefaction plant with annual capacity of 2 million tonnes to utilize the natural gas resources of Jilin Petroleum. Phase one of the project is expected to reach annual capacity of 500 thousands tonnes with gas consumption of 700 million cubic metres/year (or 2 million cubic metres/day).

In his speech at the ceremony, Mr. Su Jun, general manager of Jilin Petroleum (Group) Co., Ltd. and Chairman of the board of directors of Jigang Company, said that the establishment of Jigang Company represents an important measure to fully implement the strategic co-operation framework agreement between CNPC and Jilin provincial government and speed up the implementation of people-benefiting “Jilin Gasification” project . The Company will overall make great efforts to tasks such as project construction, enterprise management, market development, team building and harmonious joint development, striving to improve the brand image of “Jilin Jigang” and become the largest LNG production base and end-user sale enterprise in north-eastern China.

According to Mr. Wang Changsong, the Secretary of Songyuan Municipal Committee, the establishment of Jigang Company not only will play an important role in the local transformation of natural gas resources, the adjustment and optimization of industry structure and the industry upgrade in Songyuan, but also will have a far-reaching influence in the optimization of the natural gas industry structure and the protection of natural gas production safety in Jilin. Songyuan will build on its resource advantages to create the most favorable environment and provide the highest-quality services for LNG project development.

Jigang Company will, by adhering to CNPC’s corporate goal of “Energize • Harmonize • Realize” and complying with Kunlun Energy’s requirements of “Energy-saving and emission-reduction, Green development”, committed to develop the core businesses of natural gas end-user sale and natural gas comprehensive utilization, implement its strategy of “Gas In Substitution Of Oil” to make use of LNG’s strengths. It will make reasonable plans and implement such plans step by step, speed up its development and capture market opportunities, by relying on Jilin Petroleum’s advantages in terms of resource, technology, human resources and ancillary facilities and keeping closely in line with policies on low carbon emission by governments at all levels. It will make great contribution to “the improvement of energy structure and corporate economical performance, the facilitation of local economy development and employment and the implementation of people-benefiting projects in Jilin province“.

[mappress]

LNG World News Staff, May 31, 2012