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Benefiting Fujian's Clean Energy Projects - Fujian LNG Projects of the "10th Five-Year" Key Projects
The Fujian LNG project stands as a major energy initiative in China, recognized as a national strategic endeavor. Developed jointly by China National Offshore Oil Corporation (CNOOC) and the Fujian Provincial Government, it marks the first time that an LNG project in China has been independently introduced, constructed, managed, and implemented by domestic companies. The project comprises ten key subprojects, including receiving terminals, gas transmission pipelines, transportation systems, three gas power plants, and five coastal city gas utilization projects.
In February 2003, the "First Phase Project Proposal for the Fujian LNG General Project" was approved by the National Development and Reform Commission. Later that year, CNOOC Natural Gas and Power Generation Co., Ltd., a subsidiary of CNOOC, signed an agreement with Fujian Investment Development Corporation to establish China Shipping Fujian Natural Gas Co., Ltd. The project is divided into two phases, with the first phase having a capacity of 2.6 million tons of LNG per year and an estimated investment of RMB 24 billion. Construction began in 2004 and the facility became operational in mid-2007. It includes a T-type butterfly wing receiving terminal for 165,000 cubic meter LNG vessels, two 160,000 cubic meter storage tanks, and gas transmission pipelines totaling approximately 340 kilometers and 53 kilometers. Additionally, gas pipelines across Fuzhou, Putian, Quanzhou, Xiamen, and Quzhou are designed to supply up to 800,000 tons of gas annually. Three new gas power plants have a total installed capacity of 3.5 million kW and consume about 2 million tons of gas per year. The second phase aims to double the capacity to 5 million tons per year.
On April 15, 2005, the station line project of the Fujian LNG project successfully passed the international bidding process, selecting a consortium of U.S.-based Spiegel Engineering Company and China Chengda Engineering Company as the general contractor for the storage tank project. The construction of two 160,000 cubic meter ground full-capacity concrete top storage tanks is considered one of the most technically complex components of the entire project. On-site, nine high-performance drilling machines were used, each costing over 4 million yuan, with some reaching up to 12 million yuan. The foundation geology was highly complex, with large gaps between piles. Each gas storage tank required 556 piles, ranging from 28 to 50 meters deep—equivalent to 16 floors underground. Each pile had to reach the most stable rock layer to ensure seismic resistance.
According to Huang Fusheng, the safety director of CNOOC Fujian Natural Gas Co., Ltd., after completion in 2007, each gas tank would occupy an area larger than a football field, stand 56 meters tall, and hold 160,000 cubic meters of LNG. A single transfer of gas from a storage tank would require more than 4,000 units of the largest domestic tank trucks, which have a capacity of 40 cubic meters each.
The head of the Fujian Province's Key Construction Project Office stated that the first phase of the gas-fired power plants in Putian, Jinjiang, and Xiamen would begin construction sequentially, with operations expected to start in 2007–2008. The five city gas utilization projects will provide clean, safe, and high-quality living gas to around 5 million people along Fujian’s coast. They will also supply fuel for industrial enterprises, accelerate urban infrastructure modernization, and promote the growth of the urban gas industry. Within a year, some cities in Fujian were expected to transition to cleaner alternative energy sources like LNG.