Progress and Prospect of LNG

Technology in China

CHEN Jie

Chief Engineer

CNOOC GAS & POWER GROUP R&D

Agenda

• Current situation of Chinese LNG industry

– Natural Gas Production, Importation and consumption

– Chinese LNG facilities

• LNG technology progress of CNOOC

– CNOOC LNG/FLNG Liquefaction technology

– LNG/FLNG CWHE technology

– LNG receiving terminal and LNG tank technology

– Other LNG Equipment technology

• Conclusion

– Prospect of LNG Technology Demand in China

1. Current situation of Chinese LNG industry

Natural Gas Production, Importation and consumption

0.21

0.13

0.15

0.06

0.08 0.07

0.16 0.16

0.09

0.04

0.12

0.06 0.06

0.02

0.08 0.07

0.00

0.05

0.10

0.15

0.20

0.25

0

50

100

150

200

250

300

2010 2011 2012 2013 2014 2015 2016 2017 2018

Domestic NG(billion m3) imported LNG

imported pipeline NG Consumption Growth Rate

Domestic NG Production Rate

LNG imports growth trend will continue, but

growth rate may get slow, since

Natural gas accounts for only 7.8%.

Consumption VS production growth rate.

Government's Environmental Policy.

LNG Seasonal peak-shaving role.

Challenges faced by LNG domestic market

LNG fueling face competition from

electric vehicles.

Import LNG lacks competitiveness.

Chinese LNG facilities

1. Current situation of Chinese LNG industry

Current LNG facilities

20 LNG receiving terminals in operation with total capacity

of 71.25MTPA. 7 terminals in construction.

190 small LNG plants(<1MTPA) in operation, with total

capacity of 27MTPA.

2528 LNG fueling stations, 310,000 LNG vehicles.

280 LNG power ships and 18 inland LNG filling wharfs have

been built. 4 LNG power coastal tugs in operation.

1 Small LNG vessel (（HYSY301 30,000m³) for LNG

coastal transmission.

Challenges faced

Participation in overseas large LNG production.

Technical regulations and technology.

, Region of China

CNOOC LNG/FLNG Liquefaction technology

2. LNG technology progress of CNOOC

1 2A

2B

3

33

33

3

3 3

3

4

4

4

5

5

5

55

5

6

6

6

6

6 6

5

1.预冷段板式换热器

2A.预冷段绕管换热器

2B.深冷段绕管换热器

3.气液分离器

4.压缩机

5.节流阀

6.水冷式换热器

预冷冷剂回路

深冷冷剂回路

天然气回路

SMR/DMR process（<5MPTA), are

optimized and dynamical simulated

with proven proprietary CWHE and

PFHE. For FLNG CFD simulation of

ocean sloshing influence to High

tower and CWHE are verified by

sufficient experiments.

Automatic and optimal operation are

executed to a new level.

5 successful LNG Plants EPC

practices.

LNG/FLNG CWHE Design Software and Manufacturing

2. LNG technology progress of CNOOC

2. LNG technology progress of CNOOC

CNOOC LNG/FLNG Liquefaction technology

Undertook the manufacturing

of 36 core process modules of

Yamal project, weighed

180,000tone.

Mastered the key technology of

modular manufacturing and

precision positional installation

of arctic LNG project. Modular

Weight deviation<1%.

LNG receiving terminal and LNG tank technology

2. LNG technology progress of CNOOC

LNG receiving terminal and

LNG full containment tank

technology and EPC.

5 successful LNG receiving

terminal EPC practices. 6 LNG

full containment tanks EPC.

Successful development and

application

LNG Submerge pump

LNG/FLNG expanding turbine

IFV/ORV

2. LNG technology progress of CNOOC

Other LNG Equipment technology

3. Conclusion

Prospect of LNG Technology Demand in China

Technology Enhancing the liabilities and

competitiveness of LNG resource.

Large scale LNG/FLNG project technology

Technology Improving LNG's Access to domestic

residual market, emerging or potential LNG

market.

FSRU, LNG bunkering

Combination of LNG and other renewable energy.

Application of digital/AI technology in LNG

industry.