Pacific Oil & Gas Ltd. (PO&G) is an independent energy resources development company focused on helping meet the increasing energy requirements of growing Asian economies. Formed in 2003, it invests, develops, builds, owns, and operates innovative projects throughout the energy supply chain. In this series ‘Aiding Asia’s Clean Energy Transition’, we take a peek at some of its operating assets in China.
Six massive LNG storage tanks, three of which are 200,000 cubic meters each and the largest single LNG (liquefied natural gas) storage tank built in China, and 10 million tonnes of LNG per year.
Since it commenced operations in 2011, the Jiangsu Rudong LNG Receiving Terminal (RT) has unloaded over 380 LNG carriers with a collective 31 million tonnes of LNG from 20 countries across five continents. Qatar, Australia and Russia make up the highest number of arrivals. After re-gasification, this translates to 44 billion cubic meters of natural gas supplied to domestic markets.
When converted, a cubic meter of natural gas generates approximately 5 kilowatt-hours of electricity, sufficient to meet a family’s daily needs. In the last nine years, the facility has on average powered 13 million homes annually.
The Most Difficult LNG RT Project in the World to Construct
The Rudong LNG Receiving Terminal (RT) is not only recognised for its scale but also as a strategically located engineering marvel.
A greenfield project on Sunshine Island, 14 kilometres away from the coast of the Yellow Sea in Rudong County, Jiangsu Province, the Rudong LNG RT is acknowledged by experts as “the most difficult LNG receiving terminal project in the world to construct”.
It sits on a reclaimed island on a deep-water coastline along the Yellow Sea. Nantong City, where the RT is situated, is both a modern port city and the economic centre north of the Delta. The Rudong LNG RT’s construction required highly specialised geology and marine engineering works.
In 2018, the project earned plaudits and accolades from the Jiangsu Development and Reform Commission for being the most advanced natural gas engineering and development project in the province.
A model for the use of sustainable clean energy, the island is powered by solar energy from the time of construction to present-day operations.
More on the engineering marvel that is the Rudong LNG Receiving Terminal in this PetroChina video: Link here – The video provides an overview of the construction and operations of the Rudong LNG RT.
An LNG Receiving Terminal of Many “Firsts”
This USD930 million (RMB6.5 billion) project is jointly invested and constructed by PO&G (35%), PetroChina (55%), and Jiangsu Guoxin (10%). It is the second only LNG RT in China to involve a foreign shareholder.
Rudong LNG RT was PO&G’s first foray into China’s LNG industry. In early 2007, the project was officially approved by China’s National Development and Reform Commission (NDRC) and was marked as a key project supporting China’s energy security and strategy to boost clean energy supply in Jiangsu province and the Yangtze River Delta region.
Construction commenced in January 2008 and the terminal received its first LNG cargo in May 2011. Phase Two was completed and commenced operations in 2016. When the ongoing Phase Three is completed in 2021, Rudong LNG RT will be the largest LNG terminal in China with an annual capacity of 10 million tonnes. This project was also the first domestic LNG project with independent design, procurement, construction and management.
Rudong LNG Receiving Terminal – How Does It Work?
The following video showcases the operations of the Rudong LNG Receiving Terminal.
Development of Rudong LNG RT
Operational Year: 2011
Installation: 3 x 160,000 cubic meter storage tanks
LNG receiving capacity: 3.5 million tons/year
Operational Year: 2016
Installation: 1 x 200,000 cubic meter storage tank
LNG receiving capacity: 3 million tons/year
Phase 3 (under construction)
Expected Operational Year: 2021
Installation: 2 x 200,000 cubic meter storage tanks
LNG receiving capacity: 3.5 million tons/year
Pacific Oil & Gas (PO&G) Operations in China
Apart from Jiangsu Rudong LNG Receiving Terminal , PO&G also owns the Wuxi and Xiamen CCGT power plants which were operational in 2019 and 2009 respectively. The Yangjiang LNG Receiving Terminal is under construction.
PO&G has offices and operations in various parts of China.
PO&G Beijing Office
PO&G Nanjing Office
Rudong LNG Receiving Terminal
PO&G stake: 35%
Commercial operations started Nov 2011
Wuxi CCGT Power Plant
PO&G stake: 70%
Operations started Dec 2018 (1st unit) and Apr 2019 (2nd unit)
Xiamen CCGT Power Plant
PO&G stake: 100%
Operations started May 2009 (1st unit) and Jun 2010 (2nd unit)