PipeChina, (China’s state-owned National Oil and Gas Pipeline Group, which was set up in December 2019) and partner Nanshan Group have broken ground on the 20m t/y Longkou Nanshan LNG terminal project in Yantai City, Shandong Province, China.

The first phase is scheduled to be operational by 2023, with a processing capacity of 5m t/y. The facility, which is expected to cost 35bn yuan (€4.5bn), is the first major new energy infrastructure project for PipeChina. 

The partners will construct six 220,000 m3 LNG storage tanks, ship docking berths, and unloading, gasification and exporting facilities during the first phase.

The project will be modular and standardised and include full intelligent operation and full lifecycle management, according to Nanshan. It said the semi-underground LNG concrete storage tanks will use “a novel construction process including 9% nickel steel wall longitudinal joints for the first time in a large-scale LNG project”. 

Using 5m t/y of gas instead of coal for energy generation, the facility will reduce Shandong’s carbon emissions by 8m t/y, and sulphur dioxide emissions by 870,000 t/y, “having a huge impact on regional air quality and the environment”.

The aim of the project is to supply clean, natural gas for energy generation to Shandong Province, the Bohai Rim and other parts of northern China. Nanshan said: “It will increase peak shaving capacity and boost emergency reserves and the winter supply. It will be integrated with China’s main pipeline network.”

For more information visit en.pipechina.net

26th May 2020