Accelerating the development of natural gas and power generation is part of the ongoing Chinese energy structure adjustment, and it is a step of CNOOC to pursue low-carbon development and clean energy supply. Natural gas and power generation has become a pillar of the company in mid and downstream sector and presents great growth potentials.
The economic and social demand for energy keeps growing. To combat global warming, natural gas as a clean energy plays an increasingly important role. During the 13th Five-Year Plan period, the proportion of natural gas in the primary energy consumption will rise to above 10% by 2020. In addition, LNG plays the indispensable role in China’s energy supply system with its advantage of reserve and peak-load deployment in emergency.
In 2015, the company maintained its leading position in China’s LNG industry. The imported LNG reached 13.16 million tons, and the natural gas-fired power generation reached 22.3 billion kWh. 7 LNG receiving terminals were put into commercial operation, with a total annual capacity of 27.80 million tons. The length of onshore long-distance transport pipelines for natural gas accumulated to 4,309 kilometers.
In terms of market expansion, the company established a resource purchase and sale management system, promoted pilot reform of sale mode, increased marketing channels with partners and directly served terminal customers. In Guangdong, it enlarged the market share of deepwater natural gas. In the year, the company completed the layout of well-positioned stations and pipelines in China’s most developed coastal areas, with complete industrial links in some regions. Our business extended to 78 cities in 24 provinces in the Yangtze River Delta, the Pearl River Delta and Bohai Rim area. By the end of 2015, the LNG filling got rapid development in over 60 cities in 19 princes, with 200 gas filling stations.
Natural gas-fired generation capacity kept growing. Zhongshan Jiaming Electric Power Co., Ltd. prolonged the turnaround of generation sets, optimizing the planning to cut downtime. It realized islanded operation of 9F generation sets in China for the first time and established CNOOC’s first independently-operated heat pipeline. Hainan Power Plant’s generation sets were adapted to several fuels like offshore gas, LNG and mixed gas, becoming the most inclusive one of its kind, and implemented a nitric oxide emission standard stricter than the national one. Zhuhai Power Plant enhanced stability of generation sets and started production, becoming the first CNOOC unit to supply heat to outside users; it also made the calorific value measurement deal with Zhuhai Trade Company on the electronic platform of Shanghai Oil & Gas Exchange Center, which was the first one in China. Fujian Putian Power Plant kept safe operation of generation set and created a new record in energy saving indexes.
Progress was made in LNG project constructions. The No.1 line of Australian Curtis LNG project was put into production. Construction of Yuedong LNG Receiving Terminal and its wharf was completed. Shenzhen LNG project made a breakthrough in opening market and its construction went on safety as scheduled. Besides, the constructions of No.4 tank in Guangdong Dapeng LNG project, the Gaolan Harbo-Zhaoqing section of Guangdong pipeline phase 2, and the first section of Fujian LNG phase 2 were completed.
Breakthroughs were made in LNG core technologies. The company mastered a series of leading technologies in LNG storage tanks, receiving terminals, and large-scale, medium-scale and small-scale liquefaction. It improved the design capability, established the system of technological innovation, and promoted the industrial appliance of key technologies like automatic receiving terminal and large-scale storage tank. The proprietary technology of large-scale storage tank was applied in Fujian LNG expansion project and Tianjin LNG replacement project.