Construction begins on China’s first large-scale LNG project using independent technology

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Construction begins on China’s first large-scale LNG project using indigenous technology. Author/Source: Date: 2016-05-23 Clicks: 66 Construction has officially started on two new LNG storage tanks at CNOOC’s Fujian LNG receiving station. This is the first project in our country to involve the design, construction, and management of a large-scale LNG storage tank with a capacity of 160,000 cubic meters, using entirely domestic technology. It marks the achievement of full autonomy in China’s technology for large-scale LNG storage tanks, and it holds great significance for enhancing the gas storage and peak-shaving capabilities of LNG receiving stations during the 13th Five-Year Plan period, as well as for accelerating the development of China’s strategic offshore oil and gas transportation routes. The full-volume LNG storage tank is an important storage facility at LNG receiving stations, and it is also the most capital-intensive individual facility at such stations. A storage tank with a capacity of 160,000 cubic meters has a diameter of about 82 meters and a height of about 50 meters; its size is such that three Boeing 777 aircraft can be stacked inside it. LNG requires storage at extremely low temperatures of minus 162 degrees Celsius, which imposes stricter requirements on the structure and technology of storage tanks. For a long time, only a few developed countries around the world have mastered the core technology for large-scale LNG full-volume storage tanks. Since the commissioning of China National Offshore Oil Corporation’s Dapeng LNG terminal, the first LNG receiving station in the country, in 2006, CNOC has continued to make technological breakthroughs. It was the first in China to fully master the core patent technologies related to large-scale LNG storage tanks; 9 of these technologies, including seismic spectrum design techniques, filled gaps in China’s technical capabilities. The three-dimensional full-model simulation of storage tanks and multi-point contact finite element analysis techniques are world-first innovations that represent advanced levels of technology, enabling China to move from relying on foreign technologies to possessing independent technical capabilities in this field. Currently, building on the core technologies of large-scale LNG full-volume storage tanks, CNOOC has successively completed the research and design of various cutting-edge tank technologies, including ultra-large-volume tanks (over 270,000 cubic meters), new types of self-supporting tanks, and offshore storage tanks. At the same time, thanks to its experienced EPC (Engineering, Procurement, and Construction) management team, CNOOC has completed the EPC projects for the design, procurement, and construction of multiple LNG storage tanks, becoming the first energy company in Asia to possess both in-depth expertise in core storage tank technologies and the capability to carry out EPC projects. It is estimated that by using CNOOC’s proprietary LNG tank technology, the EPC total contract price for LNG tanks can be reduced by about 20%. The Fujian LNG receiving station is the first large-scale liquefied natural gas project in mainland China that was entirely developed, constructed, and managed by Chinese enterprises. It is also currently the LNG receiving station with the largest storage capacity in the country. To date, CNOOC has built a total of 7 LNG receiving stations in Guangdong, Shanghai and other locations, with an annual handling capacity of 27.8 million tons. In 2015, CNOOC’s LNG imports amounted to 13.15 million tons, accounting for nearly 70% of the country’s total LNG imports.