China: Kunlun Reinforces LNG Strategy

In 2012, Kunlun Energy, led by its philosophy of “low-carbon economy green development” along with its mission to build Kunlun Energy Brand, is highly recognized in the capital market. The company was awarded with the winning prize in Singapore for “Platts Top 250” as well as ranked second amongst the fastest-growing energy companies in Asia. Meanwhile, driven by its technological innovation as well as meticulous management, Kunlun Energy increases its production capacity, reduces costs, and improves its efficiency, resulting in an initial success in the “Gas in Substitution of Oil”. Currently, Ansai LNG plant is the natural gas liquefaction project with the largest single unit size in China. Since their successful launch, Taian and Huanggang LNG projects have been the leading force in home-made LNG equipment. The worldwide longest hydrogen-rich coke oven gas pipeline, namely, the gas pipeline connecting Wuhai to Yinchuan, commenced operation. This pipeline becomes the new benchmark in the business focused on comprehensive utilization of natural gas. Kunlun Energy’s LNG business achieves policy breakthroughs in many regions in relation to transform vehicles through “Gas in Substitution of Oil”. The demonstration projects of LNG-powered buses trigger relatively great feedbacks in Beijing, Chongqing, and other places, and even the promotion of LNG-powered vessels represents an important step forward. In the previous year, Kunlun Energy increased its daily LNG production capacity by 3.15 million cubic meters to a daily accumulated capacity of 4.53 million cubic meters. During the year, Kunlun Energy developed 28,000 or more LNG-powered vehicles, 15 LNG-powered vessels, 48 drillers for natural gas, and 227 new gas refilling stations, which proved a stable improvement in its operating efficiency as well as stronger competency in its overall corporate size.

Following the development of energy and current trends, the notion of “Gas in Substitution of Oil” is recognized as the most viable solution for clean energy development in China. “Gas in Substitution of Oil” not merely helps to optimize the structure of energy consumption in China, but also significantly reduces harmful emissions and mitigates environmental pollution. In addition, those policies encouraged by the government will provide vast room for highly efficient utilization of natural gas and the development of LNG to realize “Gas in Substitution of Oil”.