Chemtex, Black & Veatch Win Engineering Deal for Large China LNG Project

Jilin Qianyuan Energy Development has selected Chemtex, along with Black & Veatch's patented PRICO LNG technology, to deliver a major liquefied natural gas (LNG) facility due online next year, the companies said on Friday.

Expected to be completed in late 2013, the 500,000 NM3/day plant will be the largest of its kind in northeast China.

It will be delivered by the Chemtex / Black & Veatch team using a complete lump sum engineering, procurement and construction package, officials said.

The new facility will liquefy inlet pipeline natural gas. The LNG will be used primarily by trucks and other vehicles as an alternative fuel to diesel and petrol.

"Chemtex and Black & Veatch continue to enjoy the trust and support of China's LNG community because of innovative technology deployment and exemplary project delivery" said Sean Ma, CEO of Chemtex China.

"Our team is committed to providing our clients cost-effective solutions and world class LNG projects to meet provincial and national goals of clean, affordable fuel and energy."

In addition to the PRICO technology, the plant integrates a nitrogen stripping process, project officials said. This will contend with high nitrogen levels in the pipeline feed gas.

A special boil-off gas re-liquefaction system will also be installed to prevent unnecessary fuel loss and increase the efficiency of the plant.

"The demand for LNG as a clean, portable alternative fuel source is gaining momentum in China," said Kerry Erington, services projects firector for Black & Veatch's oil and gas business.

"Our successful partnership with Chemtex has allowed us to establish a trusted reputation and leading market position in China," he added.

This is the 14th LNG win in China for the Chemtex and Black & Veatch combination since the partnership began in 2005, the companies said. Five of those awards were in 2011 alone.