Guangzhou Guanggang Gases and Energy Co. Ltd has signed a cooperation agreement with the Project Department of Shenzhen LNG Co. Ltd of China National Petroleum Corporation (CNPC) for an air separation plant (ASU) utilising the coldness of LNG.

The new ASU, to be commissioned by 2022, will be located Northeast area of Dapeng Bay of Shenzhen.

It will make use of the coldness during gasification of LNG to produce air gases and thus reduce the coldness pollution.

The ASU is one of the important auxiliary projects of the peak-shaving terminal of the second West-East natural gas pipeline in China. The terminal will have a receiving capacity of 3 million tonnes per day and will include four sets of 160,000m3 LNG storage tanks and one berth for LNG carriers.

It is estimated that, by 2020 and 2025, the demand of natural gas in Shenzhen and the Pearl River Delta will be 55.5 billion m3 and 68.2 billion m3, respectively.

The total investment of the ASU project would be around RMB 300m ($47.1m), with the project expected to generate an annual income of more than RMB 100m ($15.7m). Guangzhou Guanggang Gases and Energy Co. Ltd, a subsidiary wholly-owned by Guangzhou Iron and Steel Enterprise.

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