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[Events] China's largest LNG project in Guangdong
Latest Updated by 2006-09-09 15:56:31
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Premier Wen Jiabao and his Australian counterpart John Howard jointly inaugurated the first liquefied natural gas (LNG) project between the two countries in Guangdong in June.

This was China's first LNG-import project. Under the import contract, Australia will supply more than 3.7 million tons of LNG each year to Guangdong over the next 25 years.

This Shenzhen LNG project was one of Guangdong's efforts to replace polluting agents with cleaner resources and to alleviate its power shortage.


The Shenzhen LNG project began in 2003. The first phase of the project was completed in May this year, with a 3.7 million ton annual capacity.

The first phase involves the con-struction of an LNG import terminal, two LNG storage tanks, a re-gasification plant, associated marine engineering works and a 385 km LNG transferring trunk line system.

The LNG terminal is located at Ping Tou Jiao on the Dapeng Peninsula in Dapeng Bay of Shenzhen and the trunk line is being constructed on the eastern side of the Pearl River Delta (PRD) region to supply LNG to Shenzhen, Dongguan, Guangzhou, Foshan and Huizhou in Guangdong and Hong Kong, as well as five power plants in the province.

According to Guangdong Dapeng LNG Co. Ltd. sources, the first shipment of Australian LNG had arrived in Dapeng Bay on May 26 and had been transferred to power plants in mid June for power generation.

Residents of the cities covered by the first phase systems will be able to use clean and cheap LNG by August. The price is not set yet but, according to governmental officials, costs will be 30 to 40 percent lower than liquid pet-roleum gas (LPG).

The second phase of the project includes an increase in the capacity at the LNG terminal by about 2.9 million tons per year and the extension of the trunk line by a further 182 km past Foshan to supply the western side of the PRD region, including Zhuhai, Zhong-shan and Jiangmen as well as Huizhou in the eastern wing.

Another LNG terminal in Zhuhai, a city on the west bank of the PRD region, was recently opened. The Zhuhai project involved an investment of 8 billion RMB and is expected to receive and store 3 million tons of LNG annually.


The Shenzhen LNG project is part of the central government's plan to increase gas use to 8 percent by 2010 from 3 percent of the nation's total energy consumption currently. The central gov-ernment has planned to build 10 to 11 LNG terminals by 2010, to increase the usage of LNG and reduce reliance on coal.

The Shenzhen LNG project helps alleviate worsening air pollution in the PRD region, which is mainly caused by coal-fired power plants. Besides LNG, Guangdong is also launching projects using wind power, solar power, nuclear power and biomass energy to produce electricity.
LNG projects and all other new resource projects will help Guangdong to optimize its energy structure and have a sustainable energy supply, which is key for the province where currently more than 90 percent of its energy depends on imports to maintain stable social and industrial development.


Shenzhen Dapeng LNG project

Shenzhen Dapeng LNG project was launched in 2003 and was constructed in two phases. Phase 1 was completed in May 2006 and Phase 2 is to be finished by 2008. The project involved a total investment of 29.1 billion RMB and was shared by:

  • China National Offshore Corporation (CNOOC) - 33% share
  • Guangdong Province consortium (includes Shenzen Investment Holding Company, Guangdong Electric Power Holding Company, Guangzhou Gas Company, Dongguan Fuel Industrial General Company and Foshan Municipal Gas General Company) - 31% share
  • British Petroleum Amoco - 30% share
  • Hong Kong Electric and Light Company - 3% share
  • Hong Kong and China Gas Corporation - 3% share

Zhuhai LNG project

This project was jointly launched by CNOOC and Guangdong Yuedian Group Co. Ltd, with an investment of 8 billion RMB. The terminals of Zhuhai LNG project are located in Nanjing Bay, Gaolan Port.

The first phase of the project is planned to have an annual capacity of 3 million tons of LNG after it is completed in 2010. The LNG will be piped to cities on the west bank of the Pearl River. The preparation work of this second LNG project in Guangdong began last year.

Editor: Yan

By: Wing Source:
Previous:  Emission of Main Pollutant in Guangdong reduced  Next:Guangzhou University Town start to use LNG tomorrow

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