GE, Energas pen LNG infrastructure MOU

GE Oil & Gas and Dalian Energas Gas-System signed a deal to build LNG infrastructure in China.

According to the MoU, GE, through enCryo, a GE O&G and Maison joint venture in China, will build one Small-scale liquefied natural gas plant with a daily production capacity of 50,000 m3 in Xinjiang, China.

Over the next three years, the companies will work together to build up to eight similarly sized plants in the region.

It is expected that China will demand natural gas of 219 billion m3 by 2015 and 411 billion m3 by 2020. To meet the rapidly growing demands for energy, part of China’s 13th Five Year Plan is to develop unconventional gas as a major fuel source.

However, China’s unconventional natural gas sources are relatively small and scattered, and the country’s limited gas pipeline network leaves much of its natural gas resources untapped and stranded.

GE’s modular, Small-scale LNG plants are well-suited for processing and liquefying gas in remote areas to help complement limited gas pipeline networks and improve the efficiency of gas usage, the company said in a statement.

Press Release, September 30, 2014; Image: GE Energy