Black & Veatch and Chemtex win LNG facility contract

Black & Veatch, in partnership with Chemtex, has been awarded a contract to deliver a 400 000 tpa liquefied natural gas (LNG) processing facility in Erdos, Inner Mongolia. The LNG will be used primarily by trucks and other vehicles as an alternative fuel to diesel and petrol.

The LNG processing facility is the third and largest LNG plant that the team will deliver for Erdos Huaqing Energy Co. Ltd.

The Erdos LNG plant will feature Black & Veatch’s patented PRICO® LNG technology. Chemtex will provide engineering, procurement and construction services.

Local governments throughout China are promoting the switch to natural gas fuelled fleet vehicles, with estimates showing that the number of natural gas vehicles in China reached nearly 1.5 million last year.

LNG as fuel gaining momentum

“We have worked with the Black & Veatch and Chemtex team since 2005 to deliver two 200 000 tpa LNG plants in Erdos, Inner Mongolia and Dazhou, Sichuan,” said Mr. Wu, Lexian, Chairman, Erdos Huaqing Energy Co., Ltd. “These facilities are benchmarks of the LNG industry. Both plants continue to work stably and are functioning well. When it came to selecting the right partner for our 400 000 tpa LNG plant in Erdos, we chose the Black & Veatch and Chemtex team because we believe this is choosing success.”

“We have seen the LNG industry develop rapidly in China in recent years, and its use for transportation is gaining momentum at a rate ahead of other markets we work in. This is mainly driven by local municipals and in Beijing, for example, there are plans for more than 3000 LNG fuelled public buses by the end of year,” said Edward Zhou, Business Development Director of Black & Veatch’s oil and gas business in China. “Natural gas and LNG, in particular, also play an increasingly important role in improving the lives of rural China residents where energy distribution utilities are in the early stages of development.”

The LNG processing facility in Erdos will be completed in two phases in December 2014 and May 2015.

Adapted from press release by Callum O'Reilly

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