China’s state-owned National Oil and Gas Pipeline Group (PipeChina) and partner Nanshan Group have broken ground on the 20m t/y Longkou Nanshan LNG terminal project in Yantai City, Shandong Province, China.
The facility, which is expected to cost 35bn yuan (€4.5bn), is the first major new energy infrastructure project for PipeChina, which was set up in December 2019. The first phase, with a processing capacity of 5m t/y, is scheduled to be completed and operational by 2023. During the first phase, the partners will construct six 220,000 m3 LNG storage tanks, ship docking berths, and unloading, gasification and exporting facilities.
Nanshan says that 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. The project will be modular and standardised and include full intelligent operation and full lifecycle management.
The Longkou Nanshan LNG project will supply clean, natural gas for energy generation to Shandong Province, the Bohai Rim and other parts of northern China. It will increase peak shaving capacity and boost emergency reserves and the winter supply. It will be integrated with China’s main pipeline network.
Nanshan says that using 5m t/y of gas instead of coal for energy generation 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.