CNPC’s direct LNG supply business starts in Fujian

China National Petroleum Corporation (CNPC) launched its direct LNG supply business in Fujian, netting the first contract with the Shuguang Iron & Steel company.

In 2017, the steelmaker opted to use natural gas instead of coal in its production process.  The company developed its natural gas infrastructure in two phases.

The company used regasified LNG delivered from the LNG terminal, however, in the first phase of the direct supply project, the companies built a regasification facility featuring three 150 cubic meter storage tanks and supporting facilities capable of processing 8,000 cubic meters of natural gas per hour.

CNPC noted in its statement that the completion of the direct supply project boasts the company’s natural gas business and is a step forward in developing a direct supply of natural gas to industrial users.

CNPC’s Fujian unit will continue with the development of the second phase of the project which will see the expansion of the direct supply model across the province.