The Chinese Liquefied Natural Gas Industry Market Presents Great Opportunities
Liquefied Natural Gas Industry
China's natural gas supply comes entirely from domestic production, and will fall short
of future demand. Imported LNG and pipeline gas will supply the difference. China
National Offshore Oil Corp. estimates natural gas demand in 2020 will reach 251 bcm, of
which 109 bcm will be produced domestically. Gas-price competitiveness should emerge
once the government loosens its price control on coal.
The NDRC predicts China will require an investment of USD27 billion to construct its
natural gas and LNG infrastructure, providing excellent opportunities for U.S.
manufacturers and suppliers of LNG equipment.
The first LNG import terminal, a 3.7mmt/year facility in Guangdong (GDLNG), will
import LNG from Australia's North West Shelf project. By 2010, the GDLNG's annual
receiving capacity will increase to 10mmt. Australia will be one of China's major
suppliers. The Chinese government has expressed a preference for LNG from Australia
and Indonesia, while minimizing dependency on Qatar and other Middle East countries
because of political risk.
The LNG projects will require receiving terminals, tanks, gas-fueled power plants, cycle
gas turbines, and gas pipelines to transport LNG after gasification. Some projects may
need to install a 100,000DWT port and a gas grid.
LNG projects will involve "upstream" and "downstream" sections. "Upstream" will
require terminal and trunk line construction. "Downstream" will require LNG
transportation, gas power plants, city LNG application and distribution projects, and
network construction. The LNG industry chain typically includes a LNG plant, terminals,
storage devices, transporting vehicles, and gasifying stations.
The development of China's LNG industry will require four specific needs: small-scale
liquefying equipment, cryogenic energy utilization, key equipment in the LNG chain, and
energy-saving liquefying process.
Developing the LNG industry in China is critical for diversifying China's energy
structure and establishing a stable gas supply. Expanding the LNG industry in China will
help develop relevant industries, such as transportation, liquefying equipment, low
temperature storage, high-end pumps and valves, and trunk-line construction.
U.S. companies take the leading roles and provide advanced technologies in LNG
"upstream" and "downstream" construction and development. Many Chinese end-users
have favorable opinions of American products and are eager and willing to do business
with the United States. China's booming LNG industry will spur demand for LNG related
products, equipment and engineering services. "American" equipment has a reputation
for technological excellence and quality. Innovation, automation, and precision make
U.S. equipment and technology superior to that of its competitors.
LNG Gas Power Stations
Greater natural gas supplies will create demand for small-scale (under 5MW) industrial
and commercial co-generators. While facing strong competition from the 30MW coal
fired district Combined Heat and Power (CHP) systems, there is strong market potential
for small-scale, co-generators as they significantly improve energy efficiency, energy
security, and the environment.
China will build at least 30 LNG carriers over the next 10 years to transport LNG from
abroad. Several Chinese shipyards are already capable of constructing LNG carriers.
Chinese officials expect Chinese shipyards to have the ability to build more than 10
carriers annually by 2015.
* Containment LNG Tanks
* Insulation systems
* Resilient blanket to reduce perlite pressure
* Cryogenic piping and insulation systems
* High pressure pumps
* Vapor recovery systems
* Instrumentation & control systems
* Low temperature, low-pressure valves: ball, gate, globe and butterfly valves for
* Low Temperature Terminals
* Automatic welding equipment
* LNG trunk-line system
* LNG Compressors and Engines
Equipment for Infrastructure Construction
* Loading and discharging ports
* Jetty: Unloading arms, suspended deck
* LNG peak-shaving plant
* Equipment for trunk-line system construction
Other Related Equipment
* LNG transportation trucks or tank cars
* LNG gasifying stations and relevant equipment
* Small-sized natural gas liquefying equipment: for natural gas stations and LNG
* LNG cold power utilization technology and equipment
* Heat exchangers
* 9% nickel
* Perlite for keeping low temperature
* Semi-automated UT inspection (SAUT) for 9% nickel steel
In much of the equipment listed above, U.S. LNG equipment manufacturers are
especially well received in the global LNG industry due to consistently superior quality
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