PetroChina rethinking its LNG strategy
PetroChina was forced to think over its strategy of producing LNG as transport fuel to over 80,000 LNG vehicles on China’s roads, as its unit, Kunlun Energy shut down two major plants in the past month.
According to sources, Kunlun’s utilization of its plants has fallen bellow 50% as China’s economy slowed down and feed gas prices were pushed up, reports Reuters.
Kunlun Energy has spent billions on several LNG plants and over 600 fueling stations and is now testing a new 600,000 tpy facility in Tai’an, that is according to sources, doomed to incur losses as soon as it starts operation.
PetroChina has stopped the expansion of its onshore LNG business to look into the existing facilities’ economics.
LNG World News Staff, August 18, 2014; Image: PetroChina