GE, Energas to Build Small Scale LNG Infrastructure in China

GE Oil & Gas and Dalian Energas Gas-System Co., (Energas) last week signed a strategic Memorandum of Understanding (MoU) to build LNG infrastructure in China.

According to the MoU, GE, through enCryo, a GE O&G and Maison joint venture in China, will build one small-scale LNG plant with a daily production capacity of 50,000 cubic meter in Xinjiang, China.

Over the next three years, the companies will work together to build up to eight similarly sized plants in the region, GE said.

“This agreement is part of a strategic relationship between GE Oil & Gas, enCryo and Energas to support the development and use of unconventional gas sources in China and provide a cleaner-burning source of fuel,” GE added.

GE stated that its small scale LNG plants are well-suited for processing and liquefying gas in remote areas to help complement limited gas pipeline networks and improve the efficiency of gas usage.  

China’s unconventional natural gas sources are relatively small and scattered, and the country’s limited gas pipeline network leaves much of its natural gas resources untapped and stranded.

“China has abundant resources in natural gas, coal seam gas and shale gas. Using these resources efficiently will reduce CO2 emissions and help address the increasingly hazardous environmental issues we face in China. By implementing GE’s Small-scale LNG solutions, we hope to ultimately enable highly-secure utilization of flare gas associated with oilfield drilling in Xinjiang. The LNG we provide will also contribute to China’s clean energy initiatives by replacing diesel as a cleaner-burning fuel for long-haul buses and heavy-duty trucking,” Xie Bing, Chairman of Energas said,