Honghua, Argo LNG enter into offshore LNG platform construction HOA
Shanghai Honghua Offshore Oil and Gas Equipment Co., Ltd. (Honghua Offshore), a wholly-owned subsidiary of Honghua Group Ltd. (Honghua), entered into the first offshore LNG platform (PLNG) construction heads of agreement (HOA) with Argo LNG Partners, LLC. (Argo), with a total amount of approximately $1.8 B.
At the Sino-US LNG industry development seminar, Honghua, along with Sino-US partnersg GE, Braemar, Wood Group and China Aerospace (Shanghai), announced the "Sino-US Integrated Solution to LNG Industry". Honghua together with its Sino-US partners initially introduced fixed platform technology into LNG factory design and developed the PLNG. Comparing with traditional LNG liquefaction factory, PLNG has unique advantages, including:
- It can be established in American federal waters to avoid several years approval period.
- The integration of port and factory, converting overseas EPC project to Chinese manufacturing to achieve low cost, controllable cycle, and convenient construction.
- It can be designed as fixed or movable platform with high flexibility to adjust its layout according to global resources market.
The first set of PLNG will be delivered to clients after modular manufacture, installation and debugging under EPC model with the "Honghai" crane (the world biggest offshore crane with a lifting capacity of 22,000 ton) in the factory of Honghua Offshore. The delivery would be more efficient and reliable than traditional model. The solution is fully consolidated the advantages of American LNG liquefaction equipment and Honghua's EPC construction. The first set of PLNG is scheduled to be installed in the US Gulf of Mexico and take 2 to 3 years to complete the construction, including 4 production platforms, 4 storage platforms, 1 accommodation platform, 1 central processing platform, and a pier which is available for LNG vessel carrying 30 Mm3 to 260 Mm3 LNG to park. The designed annual LNG processing capability and storage capability is max to 3.6 B tons and 240 Mm3 respectively.
This Sino-US LNG industry development seminar also invites top companies of the LNG industry as well as the experts worldwide, to explore and discuss the cooperation of Sino-US LNG industry development. Benefitted from the significant success of US LNG revolution, the US will become the largest LNG export country in the world, while the natural gas consumption in China is increasing rapidly due to the enforcement of environment governance and energy structure adjustment. In 2015, the natural gas consumption in China was less than 200 Bm3, counting less than 6% in terms of total amount of primary energy consumption, which was largely lower than the world average level of 24%. It is expected the natural gas consumption in China will maintain the annual growth of 8%. In the future, importing the stable-supplied and cost-effective LNG from US through the Sino-US Integrated Solution to LNG Industry will help to reduce intermediate section so that Chinese natural gas users can enjoy a long-term and stable supply of LNG at the best price, and help to optimize the energy structure of China to cope with the increasingly severe challenges from environment and climate. Furthermore, importing LNG from US will also realize the diverse supply of natural gas to China and benefit the stable development of natural gas as a national strategy.
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