China gets its first shale gas liquefaction plant

Liquefaction plant in Sichuan, China
Source: press release

The Chinese oilfield services company, Jereh Group, announced it has successfully finished China’s first shale gas liquefaction plant in Sichuan.

The company announced in a press release taht during the first phase, the plant will produce 2,470,000 cubic feet of LNG per day (2.47 MMSCFD) with the capability raising to up to 10,590,000 cf/d (10.59 MMSCFD) during the second phase. The construction of the second phase will commence in January 2015 and create 30 jobs.

The plant is located at Junlian County in the Sichuan Province, within a shale gas play covering an area of 718,000 sq ft. In 2014, shale gas production in Junlian was 3,530,000 cf per day. After fulfilling the local demand of 423,800 cf, the rest of the gas will be liquefied and sold for profit. As the project contractor, Jereh offers an integrated suite of solutions from designing, engineering, to procurement and construction services (EPCM).

“Jereh has taken only six months to bring liquefied shale gas into reality, cutting the usual period by half. Its success showcases China’s shale gas commercialization potential and Jereh’s outstanding EPC capability for natural gas piping design, process selection and onsite construction,” an unnamed government official was quoted as saying.

“We believe this project will drive Jereh to step out for more LNG projects worldwide. Jereh modularized Mini LNG project with production size from 200,000 to 11,200,000 cf per day ensures quick onsite construction and better cost advantage,” said Mr. Yang Zhiguo, Jereh General Manager.

“For example, In Southeast Asia, the LNG development focuses on small, mid-scale LNG projects. [This is true particularly] in Indonesia as it has small untapped stranded gas resources. Transmission infrastructure or LNG liquefaction projects to ship the gas to regasification terminals will be an expansion.”

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