The plant in the southwestern city of
This is the second major gas project the company has announced in a week. China Gas said May 23 it had formed a venture with Oman Oil Co. to ship the fuel to
"This is a very positive move from China Gas as the nation"s gas industry will grow very fast in the next five years and beyond," Duncan Chan, an analyst with Everbright Securities Co., said from
The project includes construction of facilities to remove polluting sulfur and carbon from gas, a liquefaction plant, storage space and the production of trucks to transport LNG. China Gas expects the project to generate annual revenue in excess of 2 billion yuan on completion in 24 months, it said in the statement late yesterday.
LNG is natural gas that has been chilled to liquid form, reducing it to one-six-hundredth of its original volume at minus 161 degrees Celsius (minus 259 Fahrenheit), for transportation to destinations not connected by pipeline. On arrival, it"s turned back into gas for distribution to power plants, factories and households.
"Investing in LNG projects will help us to alleviate some of the pressure of gas shortages in downstream city gas projects and further enlarge our market share," the company said.
Gas for the venture will come from
China Gas shares rose as much as 24
PIN/CHINADAILY.COM.CN
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