Kunlun: COG LNG Project Completed

On 6 January 2014, facilities of the composite utilization project on reduction of coke oven gas (COG) emission in Wuhai City of Inner Mongolia — Wuhai Huaqi Xilaifeng LNG plant were successfully commissioned. This marks the full production of the project, signifying that China has taken a solid step forward in the exploration and innovations of COG utilization.

The composite utilization project on reduction of COG emission in Wuhai City was constructed under the investment of China Natural Gas Corporation Limited, a company controlled by Kunlun Energy Company. The project, with a total investment of RMB4.7 billion, was kicked off in April 2011 and completed and put into operation 32 months later. Wuhai Huaqi Xilaifeng LNG plant has a capacity to process 3.75 million standard cubic meters of COG and produce 1 million standard cubic meters of LNG each day. Upon the project put into operation, the plant will incur significant economic and environmental benefits: recycling 1.5 billion standard cubic meters of COG, producing about 250,000 tons of LNG, saving 940,000 tons of standard coal, and cutting carbon dioxide and sulfur emissions respectively by 1.04 million tons and 8.2 tons each year.

China is the largest coke producer in the world, while the production has been on the rise. However, most of the coking enterprises are located far from cities, so it is hard to utilize COG nearby, and even harder to store COG for further utilization. Especially, some small-to-medium coking enterprise directly “burn” COG, and some unscrupulous enterprises may even directly discharge the polluting and pungent COG into the air, hence not only seriously contaminating the environment but also causing huge wastes. Experts estimate that each year, the volume of COG combusted and directly discharged into the air in China is equivalent to over twice the designed transmission capacity of China’s “West–to-East Gas Pipeline“.

The coke oven gas-produced LNG has resolved this problem for small-to-medium coking enterprises and turned this environment “killer” into a kind of valuable clean energy. Not long ago, The coke oven gas-produced LNG has been defined by the National Development and Reform Commission and three other ministries of the country as a key project under national support and encouragement. Wuhai is an important coking base in China, producing 16 million tons of coke annually. After the project is put into production, blue sky may return to Wuhai, which is currently covered with smog all year round.

The project is not only a concrete practice of Kunlun Energy to actively respond to national policy for promoting clean energy development, but also a demonstrative project for green development as Kunlun Energy’s first across industries attempt to integrate and utilize resources of the coal coking industry. It is in line with China’s macro energy diversification strategy as well as industrial policies of energy saving, emission reduction and resource recycling. The project , upon put into operation, will bring clean LNG to central and western regions of Inner Mongolia and neighboring provinces, and will help to improve the local energy consumption structure. Therefore, the project has really attained the goal of saving energy, reducing emissions, and turning waste into treasure.

[mappress]