CNPC's Kunlun Energy Restarts Seven LNG Plants Ahead of Winters

Kunlun Energy has started operations at seven LNG plants, including China’s largest, ahead of the winter season, CNPC, Kunlun’s parent company said October 25.

In addition to Huanggang LNG plant, which is country’s largest, Kunlun has started production at Guangyuan, Guang'an, Zhaoqing, Renqiu, Bazhou and Ansai LNG plants.

Kunlun shut down Huaggang LNG plant in January 2016, which has a capacity of 1.2mn mt/year liquefaction. It started production on October 2, CNPC said without giving the reason why the plants were shut down. Most of these plants process locally produced gas into LNG to be supplied to areas not connected with pipeline. 

Hong Kong-listed Kunlun Energy, has become a leading player in China’s natural gas sector. It builds gas liquefaction plants, operates LNG receiving terminals, trucks the fuel and builds LNG filling stations.

The performance of its LNG processing operations and LNG terminal remained weak in 1H 2016, against the backdrop of softened demand, overcapacity, as well as weak oil and LNG prices, according to report by Moody's Investor Service.

Shardul Sharma