China Leason seeks to triple LNG production
China Leason Investment Group, a computer supplies seller that also manufactures and sells liquefied coal-bed gas, has said it will spend a further 500 million yuan (HK$568 million) to triple its liquefied natural gas production in the coming two years.
The Growth Enterprise Market-listed firm has begun production at its first LNG plant, which it built at a cost of 320 million yuan. Daily production capacity of the plant is now 500,000 cubic metres.
'We're targeting 1.5 million cubic metres of LNG per day by 2011,' said chairman Wang Zhongsheng yesterday at a press conference.
'The second phase will start production in the second quarter of next year by adding production [capacity] of another 500,000 cubic metres per day.'
Mr Wang added China Leason was under no pressure to increase capital in order to expand. The company would rely on cash generated from organic growth and bank loans to fund the expense.
The company's first-phase liquefaction and storage facilities are in Qinshui county, Shanxi province, while the second phase is in nearby Yangcheng county. Shanxi is the nation's largest coal-producing region.
The company said it was eyeing the market for LNG-engine heavy trucks, as the government calls for reducing emission of the car industry.
'Big carmakers like Dongfeng Motors are pushing sales of LNG heavy trucks, which will be a big market, and other carmakers are following suit,' said Mr Wang.
End-users of the company's products also include power plants, ceramic manufacturers, gas companies and aluminium manufacturers.
China Leason has sold its gas to ceramic producers in Zhejiang and Guangdong provinces and the Guangxi autonomous region since last year, and is expanding sales to other industrial users in the northern and eastern regions this year.
