(Yicai Global) Dec. 27 -- The first shale gas LNG plant in China, the Fuling LNG Plant, owned by China Petroleum & Chemical Corporation, or Sinopec, has started its trial operation, reported daily China Petrochemical News. The plant in Chongqing has mastered the operation of the production process and can start actual production soon, which will be welcome news for neighboring cities and provinces in the winter.
Fuling LNG plant is jointly developed by Sinopec and Chongqing municipal government. It had three construction phases with a design capacity of 3 million cubic meters per day and an annual LNG output of 680,000 tons.
The liquefied natural gas produced from shale gas is a clean fuel and can replace fossil fuel used in vehicles and ships through certain procedures. The LNG produced in Fuling plant will be supplied to gas stations in Chongqing, Guizhou, Hunan and other neighboring provinces and cities.
Chongqing in southwestern China is home to most abundant shale gas resources in China. However, due to the mountainous terrain and complex geological conditions, the cost of exploration and development is relatively high. Sinopec has a good number of shale gas exploration and mining projects in China's southwest region, with Fuling plant being one of the largest.