The LNG industry is expanding in search of a more sustainable future

The LNG industry is expanding in search of a more sustainable future

Giacomo Maniscalco
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Kunlun Energy reopens 7 plants in China, JetGas is seeking expansion opportunities in Lithuania, France's Engie looks to gas in Asia's "renewable conversion", while the EU is devising a strategy for LNG

In China, according to PetroChina representatives and in response to a government request to the country’s gas producers to increase output ahead of the expected demand for the coming winter, Kunlun Energy will reactivate 7 LNG facilities. Among them, the Huanggang terminal, in the central province of Hubei, is the largest, with a production capacity of 5 million cubic meters per day. In addition, Kunlun Energy has resumed operations at plants in Guangyuan, Guang'an, Zhaoqing, Renqiu, Bazhou and Ansai, mostly in the Sichuan and Shaanxi provinces, in Southwestern and Northern China, in areas not connected to a network of pipelines. Kunlun Energy, as well as other Chinese LNG producers, was forced to close many plants around the mid-2014, following the collapse in oil and consequently in gas prices.
JetGas
, the main LNG supplier in Estonia, sees the possibility of expansion on the Lithuanian market next year. According to JetGas board member Janek Parkman, the main interest of the company in Lithuania, through the construction of LNG plants in Druskininkai, Rokiskis and Kelm, is the expansion of gas supplies to industrial companies not currently connected to gas pipelines, in an attempt to help them convert to LNG.While the French company Engie, the largest independent energy supplier in the world, is trying to rid itself of the use of coal in its supplies to Asia. "We'll shift to low-carbon solutions; we do not know for sure that coal fired power plants will remain sustainable for the next thirty years," the president and CEO of Engie Asia Pacific Jan Flachet stated. The International Energy Agency (IEA) confirms that in 2015, for the first time, renewable sources surpassed coal in terms of cumulative installed global capacity, and the French energy company is therefore investing in alternative sources but, added Flachet, natural gas would remain important to solve the problems of intermittence in the generation of energy from renewable sources.
The European Parliament is seeking to define a strategy on LNG for the European Union. According to MEP András Gyurk, in a resolution voted on Tuesday, October 25, the main priorities are the promotion of competition in the industry, more affordable energy prices and security of energy supply through flexibility while at the same time safeguarding sustainability.