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While energy-capital companies such as PetroChina have taken over the LNG market, Hanas New Energy Group, the largest state-owned energy company in Ningxia, has also officially entered the liquefied natural gas (LNG) industry.
Yesterday, Hanas produced an LNG plant with an annual output of 800,000 tons of liquefied natural gas. The plant was officially put into operation. The plant is located in the Yinchuan Economic and Technological Development Zone and occupies an area of ​​250 acres. The president of Hanas, Ma Fuqiang, told reporters that the project was started in 2009 and is currently the single largest LNG plant in China.
The development of the LNG market has benefited from the promotion of LNG vehicles throughout the country. Ningxia where Hanas is located is also promoting the use of LNG vehicles. In May last year, the Ministry of Transport listed Ningxia as a pilot area for the promotion of natural gas vehicles. This year, Ningxia launched the “Generation of Gas for Oil†program in Ningxia. At present, there are more than 16,000 natural gas vehicles for “oil to gas†in Ningxia, accounting for operating vehicles. 12.3%. It is estimated that by 2015, the use of natural gas vehicles in Ningxia will account for more than 20% of the operating vehicles.
The “gas-to-oil†project of automobiles is to convert natural gas or industrial waste gas from recycling into liquid natural gas, replacing gasoline and diesel fuel for automobiles, mainly for heavy trucks and large-scale passenger buses. Compared with compressed natural gas (CNG), LNG occupies only one-third the volume of CNG. It is more portable and has a longer driving range.
“In the past year, the development of LNG vehicles in our country has been gaining momentum and has jumped from less than 100 to nearly 10,000.†Li Yuheng, a senior research fellow at China Investment Advisors Co., Ltd., said that because LNG has an excellent emission reduction effect, the price is much lower than oil, and reserves are abundant. Promoting the use of LNG vehicles will be the main direction of future road transport. It is expected that the number of LNG vehicles in China will reach 200,000 at the end of the "Twelfth Five-Year Plan."
In the face of the tempting “cake†of LNG vehicles, PetroChina and Sinopec have previously entered LNG as alternatives to gasoline and diesel for new energy vehicles. Hanas insiders told this reporter that after the Hanas LNG plant is put into production, the main target users will also be LNG vehicles in Ningxia and surrounding areas.
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