News | January 28, 2009

Black & Veatch LNG Technology Helps Deliver Needed Natural Gas Supplies To Rural China

Black & Veatch, a leading global engineering, consulting and construction company, announced recently that its patented PRICO® LNG (liquefied natural gas) process is helping bring natural gas supplies to customers in rural China.

"The availability of natural gas supplies for rural China residents is important in improving the quality of life in parts of the country where energy distribution utilities are in the early stages of development," said Brian Price, Black & Veatch's Vice President of LNG Technology. "The six LNG plants we are building use the PRICO LNG process that helps provide an efficient and cost-effective method for delivering a vital supplies of energy to rural communities."

In addition to being a valuable fuel source for residents and industry, LNG can also be used as a clean fuel for vehicles.

"Black & Veatch chose to develop these projects with Chemtex as a strategic partner in China," Price added. "Our company and Chemtex are providing engineering, procurement and construction services for the LNG facilities."

The first LNG facility is in Erdos, Inner Mongolia, and attained full production capacity of 200,000 metric tons per year in December 2008. A second facility in Zhuhai City, Guangdong Province, has also begun commercial operation.

"Following completion of the Erdos and Zhuhai facilities, we were able to start up and achieve full design capacity in just three weeks," said Wim van der Zande, Chemtex President and CEO. "This demonstrates the reliability, ease of use and precise design of the Black & Veatch technology and has enabled our clients to quickly move LNG supplies to market."

Four additional plants are planned in central Sichuan Province, central Shaanxi province, northwestern Gansu province and the northwestern Xinjiang Autonomous Region. Upon completion, the six facilities will supply a total of approximately 1.2 million tons per year of LNG, resulting in residents being able to use natural gas for heating and cooking.

"These projects demonstrate the viability of providing energy assurance in remote areas around the globe," said Bob Wojnarowski, Black & Veatch's Regional General Manager.

LNG comprises 1/600th of the volume of its vaporized gas equivalent, making LNG ideal for shipping and storage. In order to liquefy natural gas, it must be cooled to approximately -163°C (-260°F). LNG produced at the Erdos and Zhuhai facilities is transported by specially designed road tankers to markets across rural China and Shanghai City.

The PRICO Process uses a single-mixed refrigerant loop for natural gas liquefaction and has several key advantages, including the lowest capital costs of all competing technologies, a simplified refrigeration system requiring minimal equipment and simplified control and flexibility in handling variable feed gases.

About Chemtex
Chemtex is a global organization that specializes in delivering innovative and value-added project solutions based on state-of-the-art and fit-for-purpose technologies for its clients in the energy, bio-fuels, environmental, petrochemical, polymers and fibers industries. With more than 1,000 dedicated and creative staff located in offices in China, India, Italy and the USA, Chemtex offers a full range of engineering, project management, global sourcing and construction services.

About Black & Veatch
Black & Veatch is a leading global engineering, consulting and construction company specializing in infrastructure development in energy, water, telecommunications, management consulting, federal and environmental markets. Founded in 1915, Black & Veatch develops tailored infrastructure solutions that meet clients' needs and provide sustainable benefits. Solutions are provided from the broad line of service expertise available within Black & Veatch, including conceptual and preliminary engineering services, engineering design, procurement, construction, financial management, asset management, program management, construction management, environmental, security design and consulting, management consulting and infrastructure planning. With $3.2B in revenue, the employee-owned company has more than 100 offices worldwide and has completed projects in more than 100 countries on six continents. For more information,visit www.bv.com.

SOURCE: Black & Veatch

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