Changfeng Energy has obtained approval from the Xiangtan Municipal Development and Reform Commission of China for a proposed gas utilisation project in the Hunan province of China.
Pursuant to the regulatory approval, 5.3ha of land will be assigned to Changfeng for the construction of a natural gas processing facility at a cost of MYR200m ($32m).
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The facility will be equipped with an industrial metal cutting gas production line, which will have a designed daily processing capacity of 300,000m3 of natural gas.
It will also include associated LNG storage facilities, as well as a sales and a distribution centre for end users.
The company’s 50%-owned subsidiary, Xiangtan Shin-Ko Energy Co, will build, own and operate the project in the city of Xiangtan.
Natural gas will be delivered to the processing facility from the Xiangtan sub-line of Petro-China’s second west-east pipeline through a proposed natural gas gate station.
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By GlobalDataChangfeng must begin the project construction work within two years from the date of the regulatory approval.
The company said it is now working on other regulatory requirements, which will be submitted prior to beginning the construction work.
These regulatory requirements include the project design, project safety assessment and environmental impact assessment.
Changfeng chairman and CEO Huajun Lin said that the project would not only create a new revenue stream to the company, but also provide a significant supplementary gas source in the form of LNG for its current operation and/or other projects in development on Mainland China.
Changfeng is a China-based natural gas service provider with operations located throughout the country.
