OREANDA-NEWS. January 16, 2015. Jereh Group has successfully finished the China's first shale gas liquefaction plant in Sichuan, China.

At this phase the plant will produce 2.47 million cubic feet of LNG per day and the second phase, with capability up to 10.59 million cubic feet a day, will start construction in January, 2015.

The plant is located at Junlian County in Sichuan Province, the chief shale gas play area in China, and covers 718,000 square feet.

"We believe this project will drive Jereh to step out for more LNG projects worldwide," said Yang Zhiguo, Jereh general manager.

“Jereh modularised Mini LNG project with production size from 200,000 to 11,200,000 cubic feet per day ensures onsite quick construction and better cost advantage.

“For example, In Southeast Asia, the LNG development focuses on small, mid-scale LNG projects, especially in Indonesia as it has small untapped stranded gas resources. Transmission infrastructure or LNG liquefaction projects to ship the gas to regasification terminals will be an expansion."

In 2014, shale gas production in Junlian was 3.53 million cubic feet a day.

Apart from the local demand of 423,800 cubic feet, the rest needs to be liquefied for economic returns. As the project contractor, Jereh offers an integrated solution from designing, engineering, to procurement and construction services (EPCM).

"Jereh took only six months to bring the liquefied shale gas into reality, cutting the usual period by half. Its success showcases China's shale gas commercialisation and Jereh's outstanding EPC capability for natural gas piping design, process selection and onsite construction," said the government office.

In 2013, Jereh released a new concept shale gas fracturing solution "Small Well Site, Great Frac Job" to improve working and cost efficiency in the limited area while protecting the local environment.