China will see 29 new LNG plants to come on stream in 2024, with total new production capacities of 29.22 million cubic meters per day, surging 90% from last year's new capacities, according to OilChem. This will lift domestic LNG production capacity to 70.76 million cubic meters per day. On the other hand, the new plants' feedstock is focused on PNG and coke oven gas in view of improving profits.
Source: OilChem
Separately, there are 20 new PNG plants to be put into operation in 2024, with total production capacity of 21.45 million cubic meters per day, up 54% year-on-year. The new plants are mainly concentrated in Northwest China, the main natural gas production area. Moreover, the higher imported LNG prices in 2024 bolstered domestic LNG prices, thus propelling an increase in the processing margins, resulting a significant increase in the operation of new PNG plants.
Source: OilChem
At the same time, there are 6 coke oven gas plants to come on stream in 2024, mainly located in North China and East China, with total production capacity of 5.67 million cubic meters per day, soaring 103% year-on-year, for its rich profit margins and steady feed gas sources.
The production cost mainly consists of feed gas (coke oven gas), as well as water, electricity, labor and condensation purification. Generally, it requires 2.5 cubic meters of coke oven gas to produce 1 cubic meter of LNG. According to the data from several LNG plants, the cost of producing 1 tonne of LNG is Yuan 3,200-3,800/t.
Source: OilChem
With the commissioning of the LNG plants, as well as the increase of imported LNG supply, the LNG supply in China will continue to increase, and this will weigh down the LNG prices, which are expected to drop 5.40% year-on-year to Yuan 4,600/t in 2024.
New LNG Plants in 2024
|
No. |
Project |
Province |
Designed Production Capacity (Cubic Meters/Day) |
Type of Gas |
Expected Operation Time |
Current Status |
|
1 |
Linhuan Coking |
Anhui |
720,000 |
Coke Oven Gas |
2024 |
Under Construction |
|
2 |
Songyuan Xinyou Energy Technology Development Changling Branch |
Jilin |
200,000 |
PNG |
2024 |
Under Construction |
|
3 |
Jilin Saipu Energy |
Jilin |
1,000,000 |
PNG |
2024 |
Under Construction |
|
4 |
Etuoke Qianqi Kesi Oil and Gas Chemical |
Inner Mongolia |
1,000,000 |
PNG |
2024 |
Under Construction |
|
5 |
Inner Mongolia Tianlifeng Gas |
Inner Mongolia |
1,000,000 |
PNG |
2024 |
Under Construction |
|
6 |
Huiteng Energy and Chemical's Coke Oven Gas |
Inner Mongolia |
3,000,000 |
Coke Oven Gas |
2024 |
Under Construction |
|
7 |
Changming Natural Gas Development Phase II |
Ningxia |
600,000 |
PNG |
2024 |
Under Construction |
|
8 |
Linyi Steel Investment New Energy |
Shandong |
300,000 |
Coke Oven Gas |
Oct 2024 |
Under Construction |
|
9 |
Shengxin Coking |
Shanxi |
550,000 |
Coke Oven Gas |
2024 |
Under Construction |
|
10 |
Shanxi Fengbai Energy Phase II |
Shanxi |
200,000 |
PNG |
2024 |
Under Construction |
|
11 |
Weilian Energy |
Shanxi |
600,000 |
Coalbed Methane |
2024 |
Under Construction |
|
12 |
Shaanxi Yanchang Petroleum Jingbian Branch |
Shaanxi |
2,000,000 |
PNG |
2024 |
Under Construction |
|
13 |
Shaanxi Yanchang Petroleum Yan'an Branch |
Shaanxi |
2,000,000 |
PNG |
2024 |
Under Construction |
|
14 |
Jidong Oilfield Jingbian Project |
Shaanxi |
1,000,000 |
PNG |
2024 |
Under Construction |
|
15 |
Jiyuan Natural Gas Project |
Shaanxi |
200,000 |
PNG |
2024 |
Under Construction |
|
16 |
Xuanhan Honghao Energy Technology Development Phase II |
Sichuan |
300,000 |
PNG |
2024 |
Under Construction |
|
17 |
Guangneng Energy |
Sichuan |
1,000,000 |
PNG |
2024 |
Under Construction |
|
18 |
Yushang Energy Technology |
Xinjiang |
1,000,000 |
PNG |
2024 |
Under Construction |
|
19 |
Sinopec Fuling Phase II |
Chongqing |
1,000,000 |
Shale Gas |
2024 |
Under Construction |
|
20 |
Hubei Jinkong Gas |
Hubei |
500,000 |
Coal-to-Gas |
2024 |
Commissioned |
|
21 |
Kunlun Sujia |
Jilin |
150,000 |
PNG |
2024 |
Commissioned |
|
22 |
Inner Mongolia Wanrui Natural Gas Phase III |
Inner Mongolia |
1,000,000 |
PNG |
2024 |
Commissioned |
|
23 |
Ordos Ronghong Shengrui Energy |
Inner Mongolia |
2,000,000 |
PNG |
2024 |
Commissioned |
|
24 |
Ningxia Jiucheng Natural Gas |
Ningxia |
500,000 |
Coke Oven Gas |
2024 |
Commissioned |
|
25 |
Jinye Coking |
Shanxi |
600,000 |
Coke Oven Gas |
2024 |
Commissioned |
|
26 |
Urumqi Dexin |
Xinjiang |
1,000,000 |
PNG |
2024 |
Commissioned |
|
27 |
Zhongsheng Energy |
Shaanxi |
2,000,000 |
PNG |
2024 |
To be Commissioned |
|
28 |
Suining Peak Shaving Project |
Sichuan |
1,000,000 |
PNG |
2024 |
To be Commissioned |
|
29 |
Xinjiang Guanghui LNG Development Shanshan Branch |
Xinjiang |
1,000,000 |
PNG |
2024 |
To be Commissioned |
Source: OilChem
Written by Sunny Fang, fss@oilchem.net
Edited by Aggie Hu, huchenying@mysteel.com
