April 2, 2018
China’s desire for liquefied natural gas is growing and China Energy Reserve and Chemicals Group is working with FortisBC to export Canadian LNG to help meet that demand.
Twenty LNG containers are currently being filled for CERCG at FortisBC’s Tilbury facility destined for China, with more LNG shipments planned throughout 2018.
“China’s supply of LNG is currently quite limited, so we are seeking new sources of LNG to meet future demand,” said Henry Liu, Canada representative for CERCG. “We see a very good business future here in Canada and we are pleased to work with FortisBC to deliver LNG to China.”
China is ramping up its efforts to clean its air and is turning to natural gas as a reliable alternative fuel to coal and wood. With Chinese natural gas consumption rising, new market opportunities are emerging for countries like Canada that are aiming to increase LNG exports.
Beijing-based CERCG is involved in energy transportation, supply and reserves, including developing and using technology that offers environmental protection. This latest shipment will be going to Shanghai where the government is restricting the use of coal and wood, and even vehicles, to curb rising pollution.
“The Chinese people care deeply about family and future generations so they are concerned about the long-term impacts of air pollution,” Liu said. “They see the first priority as improving air quality now and then ensuring there is a greener future for the next generation.”
Last November, FortisBC launched a pilot shipment of the first container of LNG from Canada to China. Since then, FortisBC has been working with prospective Chinese customers on the logistics of shipping small amounts of LNG by container ship. FortisBC delivered two CERCG shipments of two containers each to Shanghai earlier this year.
“FortisBC is exploring opportunities to provide small-scale customers in China with LNG to help them achieve their goals of reducing air pollution,” said Douglas Stout, vice-president of market development and external relations, FortisBC. “Through these shipments B.C.-produced natural gas is playing a small, but growing role in the global action against climate change.”
FortisBC is fuelling these shipments from its Tilbury and Mount Hayes LNG storage facilities – the only such facilities on Canada’s West Coast. Construction of an expansion of the Tilbury storage and liquefaction capacity is substantially complete and based on the current commissioning schedule, it will be fully operational later this year.