PetroChina LNG enters the Big Three to fight for the terminal

While deepening Sinopec's “inland” to snatch the fuel market, CNPC is speeding up the expansion of LNG LNG in Shandong. On August 19, 2011, Shandong Kunlun Shengli Energy Co., Ltd., a subsidiary of PetroChina, was hereinafter referred to as “Kunlun Victory Co., Ltd.” and the Shandong Provincial Department of Transportation signed a strategic cooperation agreement for LNG projects in Jinan. The existing and planned expressways will be located in Shandong. LNG refueling stations will be built along provincial highways, specifically in the service areas of expressways, road management stations, and toll collection stations where fees have been cancelled; at the same time, LNG refueling stations will be built in the service areas of coastal ports and inland shipping planning. . Obviously, the Big Three of CNPC, Sinopec and CNOOC have begun to fight for terminals in the Shandong LNG market.

"Post-prevention"

Shandong LNG market has always been the sphere of influence of Sinopec. However, Shandong, which has been receiving Sinopec's natural gas from the Zhongyuan Oilfield, was severely hunger-stricken by the end of the 1990s. This gave CNPC a chance to drive straight into the country. In the LNG field, CNOOC, which was the first to eat crabs, had signed a "strategic cooperation framework agreement" with the Shandong provincial government in a package cooperation plan in 2008. An important cooperation project is to promote Qingdao LNG projects that have been brewing for many years. Sinopec did not show weakness. Its first LNG receiving station landed in Qingdao, indicating that the Shandong market plays a significant role in Sinopec's LNG strategy. On September 13, 2010, Sinopec was the first to announce that its first Shandong LNG project had obtained the "Road" of the National Development and Reform Commission, and construction has begun. This is also the first LNG project in Shandong Province to achieve "Road". CNPC followed suit and imported natural gas from Changqing Oilfield into the Shandong market. Today, it is also building the Thai Tsinghua-Weihai long-distance transmission pipeline. Its pipeline length in Shandong has exceeded half of Shandong province.

According to the information provided by relevant departments of the Shandong Provincial Government, CNPC Shandong LNG receiving station initially located at Weihai Yudao, according to a memorandum of cooperation signed between PetroChina and the Shandong Provincial Government in 2001, the two sides planned to build a 10 million-ton oil refinery in Yeouido. 1 million tons of large ethylene project. In July 2010, the two parties signed the "Strategic Cooperation Framework Agreement" again. PetroChina will take advantage of the central enterprises to further promote the construction of the Weihai LNG project. It is expected that the project will receive at least 10 million tons of LNG annually. Just one month before PetroChina and the Shandong provincial government signed a new round of the "Strategic Cooperation Framework Agreement," Kunlun Energy Shandong Co., Ltd., a joint venture with Shandong Province, was established, and Kunlun Energy holds 51%. It is worth noting that the Shandong company is one of the four major investment platforms for Kunlun Energy in the country, and Kunlun Energy will rely on Shandong to radiate related investments in the three major regional markets of Northeast China, North China and Central China.

Force terminal

In addition to the cooperation with the Shandong Provincial Department of Transportation, the cooperation between PetroChina and local companies is also accelerating. On August 20, 2011, Victory announced that it had invested 100 million yuan to establish Lihua Energy, a wholly-owned subsidiary, to focus on the search for and management of investment businesses in the natural gas field and to unify investment entities. According to the announcement, Shengli Shares plans to establish a Kunlun Victory Company with Kunlun Energy Shandong Company, Shandong Zhongguang Investment Company and Qingdao Runyu Natural Gas Co., Ltd. with a total investment of 48 million yuan, of which Shengli Shares will account for 15% of the shares and Kunlun Energy Shandong Company holds 51% of the shares. The other two companies hold 19% and 15% of the shares, respectively. It is reported that Kunlun Victory will use Shandong as the center to jointly promote, develop and operate LNG refueling stations and other natural gas projects.

PetroChina Kunlun Company is a wholly-owned subsidiary of CNPC, mainly engaged in the development and utilization of compressed natural gas and liquefied natural gas and retail sales of automotive gas. Kunlun Energy Shandong Company is a holding subsidiary of Kunlun Energy Holding Co., Ltd., a holding company of CNPC, mainly engaged in liquefaction. Gas, LNG refueling stations, etc. “The cooperative companies selected by PetroChina mostly have advantages such as “market and local resources.” An official of the Shandong Provincial Development and Reform Commission told reporters that they can quickly enter the LNG market in their cities and complete the layout.

The reporter noted that after Kunlun Energy Shandong Co., Ltd. was established in Qingdao in June 2010, it quickly expanded in Shandong through cooperation with local companies. At present, Shandong Audergy has established a joint venture with Shandong Aodegas to establish Kunlun Aode Energy Co., Ltd. and Weifang Tiantai Energy to establish Weifang Kunlun Tiantai New Energy Co., Ltd., and Taishan Gas Group to establish Taian Kunlun Energy Co., Ltd. and Jinan and Yantai. And other subsidiaries. The business scope of these companies is the LNG business of non-pipeline industrial gas and high-end industrial users in the relevant cities and surrounding areas, gas-to-oil business of heavy-duty trucks and long-distance passenger vehicles, LNG for offshore fishing vessels and inland river ships. Business, urban pipe network peaking and pipeline gas supply business. In fact, for CNPC, Kunlun Energy Shandong has planned to construct a LNG liquefaction plant with a daily liquefaction capacity of 2 million cubic meters in the Tai’an area and a 500,000 cubic meter LNG revolving area in the Qingdao area to ensure that the Shandong region controls its natural gas resources. Billion cubic meters/year. Coupled with the LNG terminal program on the Shandong coast, the solution to terminal exports will be a more urgent task in the future.

Local profit

The Big Three oil and gas giants are rarely seen in the province's LNG projects. Currently, they are located in Shandong and Jiangsu provinces on the eastern coast. "The Shandong LNG market is the battleground for the Big Three." According to the decision makers of the Shandong Provincial Government, Shandong’s total economic output exceeds that of Taiwan and is the country’s largest industrial province; it has two state-level logistics node cities: Jinan and Qingdao, and the huge market demand is undoubtedly unaffordable for the three giants. Discard. According to statistics from relevant departments in Shandong Province, the proportion of oil and gas in the energy consumption structure in Shandong has been hovering around 20%, and the proportion is far below the national average. Another authoritative forecast also shows that Shandong will be the top LNG market in the country. In the eyes of people in the industry, this is actually considered by the Shandong provincial government due to many factors such as economic interests and safe use of gas. In the past, when the LNG was alone, the province had been “sniffing” and had been receiving The Shandong province of Sinopec's Zhongyuan Oilfield was seriously under-fed in the late 1990s.

“The three major oil and gas giants are rushing to deploy LNG, which will not only protect Shandong from the threat of oil shortage and gas shortage, but also has the advantage that the huge energy saving and emission reduction pressures facing Shandong will be greatly eased after natural gas and LNG planning promote its application. According to the analysis of the above-mentioned sources, Shandong has the second largest number of enterprises in the country, and cars are large emitters of carbon dioxide. If they can achieve complete replacement in the LNG extension area, they can reduce CO2 emissions by about 1/4, and carbon monoxide and sulfur dioxide emissions can be reduced by 95. More than % can eliminate lead compounds.

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