Project Profile
Value: US$607 million
Location: Wuhai City, Inner Mongolia Autonomous Region, China
Production: 500,000 tons LNG per annum
Length: 223 kilometres (Wuhai to Yinchuan)
Start-up Year: October 2012
Wuhai Coke Oven Gas Project is the first worldwide sizeable project for the methanation of coke oven gas into liquefied natural gas, as well as the green development demonstration project of Kunlun Energy and consists of two liquefied natural gas plants to transform coke oven gas into liquefied natural gas, one gas pipeline in a total length of 223 kilometres to connect Wuhai and Yinchuan, and liquefied natural gas stations. The project is invested and constructed by Wuhai China Natural Gas Company, a subsidiary of China Natural Gas Corporation, of which Kunlun Energy Company is the holding company.
The total investment for the Project amounts to US$607 million, and started construction in April 2011. The Project has constructed a terminal supporting project of coke oven gas in substitution of natural gas of CNPC Ningxia Petrochemical Company. On 18 September 2011, the worldwide longest hydrogen-rich coke oven gas pipeline, namely, the gas pipeline connecting Wuhai to Yinchuan, commenced operation. On 27 September 2011, purified coke oven gas was successfully transported through the pipeline into Ningxia Petrochemical, fulfilling the operation target of the first phase of the entire project. The project is a demonstration project that adopts the world-class cutting-edge technology to efficiently utilise the coke oven gas for the emission reduction purposes. According to the statistics, the annual emission of coke oven gas is about 3 billion cubic metres in Wuhai City, Inner Mongolia.
Subsequent to the operation of the project, through the collection and processing of coke oven gas discharged by nine coke plants in Wuhai, the project will realise LNG annual production of 500,000 tons. This will annually reduce the carbon dioxide emission by 2.07 million tons, as well as 1,640 tons of sulfur, which effectively improves the air quality in Wuhai City and provides a new resource for Kunlun Energy to carry out its development of “gas in substitution of oil” LNG business. The coke oven gas, transported to the terminal of Ningxia Petrochemical, will transform into the raw materials required by the fertiliser plants in substitution of natural gas after certain processing techniques. The project started services in October 2012.
Operators:
China Natural Gas Co. (Kunlun Energy Company): Operator with 100% interest