Wuhai Coke Oven Gas Project Starts Production, China

The commissioning ceremony for the Energy Conservation and Emission Reduction Project for Comprehensive Utilization of Coke Oven Gas was held in Wuhai City.

The Project is invested and constructed by Wuhai China Natural Gas Company, a subsidiary of China Natural Gas Corporation, of which Kunlun Energy Company is the holding company.

Mr. Bai Xiangqun, Vice Chairman of Inner Mongolia Autonomous Region, Mr. Li Hualin, Vice President of PetroChina Company Limited and Chairman of Kunlun Energy, Mr. Bao Changqing, Party Secretary of Wuhai Municipal Committee, Mr. Hou Fengqi, Mayor of Wuhai City, as well as many other leaders attended the ceremony. They jointly pressed the initiating button to launch the full operation of the Project.

As the first worldwide sizeable project for the methanation of coke oven gas into liquefied natural gas, as well as the green development demonstration project of Kunlun Energy, the project consists of two liquefied natural gas plants to transform coke oven gas into liquefied natural gas, one gas pipeline in a total length of 223 kilometers to connect Wuhai and Yinchuan, and liquefied natural gas stations.

The total investment for the Project amounts to RMB 4.7 billion, and started construction in April 2011. The Project has constructed a terminal supporting project of coke oven gas in substitution of natural gas of CNPC Ningxia Petrochemical Company. On 18 September, the worldwide longest hydrogen-rich coke oven gas pipeline, namely, the gas pipeline connecting Wuhai to Yinchuan, commenced operation. On 27 September, purified coke oven gas was successfully transported through the pipeline into Ningxia Petrochemical, fulfilling the operation target of the first phase of the entire Project.

The Project is a demonstration project that adopts the world-class cutting-edge technology to efficiently utilize the coke oven gas for the emission reduction purposes. According to the statistics, the annual emission of coke oven gas is about 3 billion cubic meters in Wuhai City, Inner Mongolia.

Subsequent to the operation of the Project, through the collection and processing of coke oven gas discharged by nine coke plants in Wuhai, the Project will realize LNG annual production of 500,000 tons. This will annually reduce the carbon dioxide emission by 2.07 million tons, as well as 1,640 tons of sulfur, which effectively improves the air quality in Wuhai City and provides a new resource for Kunlun Energy to carry out its development of “gas in substitution of oil” LNG business.

The coke oven gas, transported to the terminal of Ningxia Petrochemical, will transform into the raw materials required by the fertilizer plants in substitution of natural gas after certain processing techniques, which represents an annual profit increase of RMB 180 million.

Mr. Li Hualin pointed out that Kunlun Energy persistently upholds the notion of “low-carbon economy green development”, and that the Project serves a strong exemplary role. Upon construction and operation of the Project, the Company will continue with innovation models, build up experiences, and constantly promote the nationwide energy conservation and emission reduction. Simultaneously, Kunlun Energy will also join hands with different communities in the society in cementing cooperation on more areas and more general levels with a view to facilitate the development of local and economic societies.

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LNG World News Staff, October 15, 2012; Image: Kunlun