China is moving toward the world’s first ever large-scale commercial liquefied natural gas project that would provide China with cheap, reliable and clean energy.
Zia Natural Gas, which is backed by state-run China National Petroleum Corp. (CNPC), is scheduled to open in mid-2019.
The gas will be shipped by rail from the eastern province of Shandong to a port in Shandung.
Zicong Energy, a state-owned energy firm, will build the gas storage facility and ship it to a central warehouse, where it will be liquefiably transferred to domestic consumers.
The facility will be able to process 1.5 billion cubic meters of gas a day.
Zapf, a subsidiary of the state-controlled China National Offshore Oil Corporation (CNOC), will manage the project, and Zicong will provide the infrastructure.
The Zicous are also the developers of a project that could deliver 200 billion cubic feet of natural gas per day from the northwest to a major Chinese port in the southwest, according to state-backed Xinhua news agency.
Zilin Energy, the largest privately owned energy company in China, is also developing Zia, and is aiming to produce the gas from the region within two years, according a company statement.
Zitong Energy’s chairman, Wang Jianlin, is the vice chairman of Zilin, and a former governor of Shansi, the city in eastern Shandang province where Zia is planned to be built.
“Zia’s success is in part thanks to the cooperation of China National Energy Corp. and state-sponsored Zicou, which are both working together,” Wang said in a statement.
“The company is currently in the early stages of its project, but will be the largest and most complex project in the history of the nation’s gas industry.”
Zia, which will be jointly built by Zilins subsidiary Zapf, and Chinese state-funded China National Engineering & Technology Corp., will provide electricity, heat, steam, and heat for the project.
Zizhi Energy, which has a joint venture with Zicongs subsidiary, China National Heavy Industry Corp., is planning to start production of the gas by 2020.
Zizhi is also working on a joint project with Zilian Energy to build a liquefaction plant in the Zia area.
“Our main goal is to make Zia a truly international gas hub,” Wang added.
Zi, which was named as the top energy producer in the world by the U.N. last year, is estimated to have about 50 trillion cubic feet (tcf) of gas, according the World Energy Council.
Zihuang Power and the Xinjiang Energy Group, a Chinese state company, have a joint-venture to produce Zia.
The project has been in the works for more than a decade.
The Xinjiang province in the northwest has been one of China’s largest producers of natural resources since the 1970s.
The region has been hit hard by the global financial crisis, with its economic development falling dramatically.