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Kunlun Energy resumes LNG production

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LNG Industry,

According to Reuters, Kunlun Energy Co. Ltd has resumed – or is in the process of resuming – production at seven LNG plants in order to meet imminent winter demand.

The company has reportedly had to shut down a number of its key facilities since around mid-2014 due to the fall in oil prices and consequent decrease in the competitiveness of gas.

This includes China’s largest LNG plant, which opened in 2014, has a capacity of 5 million m3/d, and is located in Huanggang, central Hubei province. The facility reopened in October 2016 following a 10-month shutdown.

Reuters also reports that operations have resumed at plants located in Guangyuan, Guang'an, Zhaoqing, Renqiu, Bazhou and Ansai, mostly in southwestern Sichuan province and northern Shaanxi province.

The majority of these facilities process locally produced natural gas into LNG for areas that do not have access to a pipeline grid. They use trucks to transport the LNG.

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