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China’s First Shale Gas Liquefaction Plant Completed

Jereh Group's completed new shale gas liquefaction plant in the Sichuan Province

China’s first shale gas liquefaction plant has successfully been completed in Sichuan, China, the Jereh Group has announced this week.

In phase one, the plant is set to produce 2,470,000 cubic feet of LNG per day (2.47MMSCFD), with the second phase (starting construction this month, set to create 30 direct jobs) capable of up to 10,590,000 cf/d (10.59MMSCFD).

The plant is situated at Junlian County in the Sichuan Province, a major shale gas hub in China, covering an area of 718,000 sq ft.

In 2014, the shale gas production in Junlian is 3,530,000 cf per day. Apart from the local demand of 423,800 cf, the rest need to be liquefied for economic returns.

As the project contractor, Jereh offers an integrated solution from designing, engineering, to procurement and construction services (EPCM).

“Jereh takes only six months to bring the liquefied shale gas into reality, cutting the usual period by half. Its success showcases China’s shale gas commercialization and Jereh’s outstanding EPC capability for natural gas piping design, process selection and onsite construction,” said the government office.

With years of R&D and manufacturing experience, Jereh is a worldwide leader in oil and gas exploration and production, esp. in shale gas. In 2013, Jereh released a new concept shale gas fracturing solution “Small Well Site, Great Frac Job” to improve working and cost efficiency in the limited area while protecting the local environment.

Jereh’s General Manager Yang Zhiguo said: “We believe this project will drive Jereh to step out for more LNG projects worldwide. Jereh modularized Mini LNG project with production size from 200,000 to 11,200,000 cf per day ensures onsite quick construction and better cost advantage”.

“For example, In Southeast Asia, the LNG development focuses on small, mid-scale LNG projects esp. in Indonesia as it has small untapped stranded gas resources. Transmission infrastructure or LNG liquefaction projects to ship the gas to regasification terminals will be an expansion.”

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