GE Oil & Gas and Energas Sign a Strategic MoU to Build LNG Infrastructure in China

By Craig Resnick

Category:
ARC Report Abstract

According to the Memorandum of Understanding (MoU), GE, through enCryo, a GE O&G and Maison joint venture in China, will build a small-scale LNG 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. This agreement is part of a strategic relationship between GE Oil & Gas, enCryo and Dalian Energas Gas-System Co., Ltd. to support the development and use of unconventional gas sources in China and provide a cleaner source of fuel.

Chinese demand

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 modular, small-scale LNG plant design with standardized components provides customers with all the benefits of an integrated, plug-and-play solution, a simplified plant control process with remote monitoring capabilities, decreased plant commissioning times, simplified maintenance and reduced overall installation costs. The LNG plants will be designed, engineered, and manufactured through EnCryo Engineering.

 

Keywords: Small-scale LNG, Unconventional Gas Sources, Natural Gas, Gas Pipeline Networks, ARC Advisory Group.

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