clean energies and promote green development. Natural gas and power generation has become one of the pillar industries of the Company and shows the greatest growth potential.
As the Chinese energy consumption structure dominated by coal has brought about a series of environmental problems, “Substituting coal with natural gas” is the inevitable choice in the Chinese energy restructuring. It is expected that the proportion of natural gas in the primary energy consumption will continue to rise, likely up to above 10% by 2020, and the development of natural gas industry will step into an “expressway” stage.
Natural gas and power generation has become one of the pillar industries of the Company and shows the greatest growth potential.
In 2013, the Company maintained a leading position in China’s LNG industry. The importing LNG reached 13.01 million tonnes, annually racking up 56.98 million tonnes and thus breaking the record of 50 million tonnes; the natural gas-fired generation capacity reached 15.2 billion KWh, annually racking up 94.6 billion KWh and breaking the record of 90 billion KWh; two LNG receiving terminals in Zhuhai and Tianjin cities were put into trial run smoothly, with a LNG receiving capacity of 24.8 million tonnes/year; the length of built-up onshore long-distance transport pipelines for the natural gas was accumulated to 3698km; and there was 165 gas stations under operation and construction, a year-on-year increase by 42%.
Pictures about the operating Putian LNG receiving terminal in Fujian
Annual LNG Imports of 13.01 Million Tonnes
13.01
Accumulative LNG Imports of 56.98 Million Tonnes
56.98
Accumulative Power Generation of 94.6 Billion KWh
94.6
Highly recognized by the international LNG industry, the Company leaped to the third LNG purchaser in the world and achieved remarkable success in the LNG full industrial chain, guiding the developmental direction of the global LNG industry. At the 14th World LNG Summit, the Company stood out from hundreds of LNG competitors and won the most influential award in the world’s LNG industry – “Outstanding Contribution Award 2013”, becoming the first Chinese company winning this award.
Dramatic breakthroughs were made in the long-term procurement of LNG resource and the negotiation on new resource projects was pushed forward, contributing to substantial improvement of the Company’s international influence. The signing of the LNG resource procurement agreement with BG Group regarding the increase in LNG resources by 5 million tonnes per annum was successfully completed, which became one of the largest contracts on the single deal of LNG procurement in the world currently.
The agreement with TOTAL on amending the LNG contracted price was signed. The cooperation framework agreement with America Cameron on the GDF SUEZ LNG project for 1 million tonnes/year for 20 years was signed.
A price computational formula 100% linking up with the natural gas index of America Henry Hub was adopted for the first time.
The Company actively explored innovations in the spot trade. 8 vessels of spot LNG goods were purchased and 2 main contracts for LNG spot goods trading were signed all the year round. The transshipment of 2 vessels of spot goods was successfully accomplished, which is the first trade on LNG directly between the Mainland and Taiwan, making a significant contribution to the energy cooperation of both sides.
The Company followed the principle of “market going ahead”, implemented the differentiated strategy, blazed new trails in the commercial model, and took various measures to promote the market development. As the share in the natural gas market in Guangdong reached 78%, the Company was developing into the biggest liquid gas supplier within East China. To ensure the supply of LNG under emergency, the floating-type LNG project in Tianjin was successfully put into service and supplied gas to the whole city and even to the whole region of Hebei Province through swapping with CNPC resources. The project made great contribution to the Beijing-Tianjin-Hebei regional atmospheric pollution control plan and gas supply in winters; met the gas demands under the extremely hot summer in Zhejiang Province, which is highly praised by the government and users. The Company carried out an in-depth development of the new traffic energy market LNG Distribution and Transportation
Tianjin Floating-type LNG storage gasification equipment around the “Two Deltas and One Bay – Pearl River Delta, Yangtze River Delta and Bohai Bay”, and input vigorous efforts in promoting the gas station acquisition process, so as to get its new traffic energy business developed rapidly. 29 prefecture-level cities were involved with business in 2013, racking up 58 prefecture-level cities in 22 provinces; 55 LNG gas stations were newly operated with about 17 thousand transporting vehicles; the LNG fuel transformation for vessels and diesel locomotives was under normal progress that the first oil-to-gas vessel in Anji County, Huzhou City set sail for a trial run and the first demonstrating double-fueled locomotive under cooperation with CSR Corporation Limited moved down the production line for a trial run.
Major projects were propelled in a planned and steady manner. 17 projects under construction were free from occurrence of major accidents regarding the quality, environmental pollution and safe production. Also the preparation and related service work for pre-launching projects was conducted sturdily, including Zhuhai LNG, Tianjin Floating-type LNG, “Jinzhou 25-1” Natural Gas, Heze Coking Furnace Tail Gas Recycling and so on.
The Company made efforts for innovation, creation and efficiency integration and built core competitiveness in the technology fields. The small natural gas liquefaction process package independently researched and developed by the Company was successfully applied in the Yingkou Liquefaction Project, achieving a leapfrog breakthrough from technical research to engineering application. The Company undertook researches on the maritime engineering hot technology – floating-type liquefaction in 3 tasks at the state level and 1 task from the Ministry of Industry and Information Technology. The independent design of LNG full capacity storage tank realized a zero breakthrough at home and the core design of 2 storage tanks of 30 thousand cubic metres for Tianjin Floating-type LNG Project was independently completed, with all technologies reaching the international advanced level, further firming the Company’s technical leading position in the domestic LNG industry. The information construction saw significant progress, representing by the completion of 3D emergency management system, the ERP implementation and the construction of GIS digital pipelines.