Market value

Market value

    In recent years, as the number of domestic LPG deep processing enterprises has increased rapidly, the gap of domestic LPG supply becomes larger and larger. Currently China needs to import 3-4 million tons of LPG every year mainly from the Middle East. With the increasing of private enterprise investment, LPG demand will become even larger. Facing the trend of global economic integration, import and export volume of China’s crude oil and chemical products has increasing rapidly, which brings us all-round challenges while provides broad development space and rare opportunities.

    In March 2013 Chinese President Xi Jinping visited Russia and both sides signed the “Joint Statement on Deepening the Sino-Russia Comprehensive Strategic Partnership for Mutual Benefit”. The Sino-Russian cooperation in the energy field is an important part of bilateral economic and trade cooperation. Since 2011, Russia has kept supplying crude oil to China through oil pipelines, with the scale of 15 million tons per year. In 2012, Sino-Russian transmission lines of 500kv was put into use, greatly improved the electricity trade in both countries. In addition, the two countries have carried out large-scale cooperation in nuclear energy, coal trade, natural gas and other fields; meanwhile, cooperation in LPG field is also actively carried on.

    Manzhouli Fareast Gaseses Co., Ltd, after carefully research, clearly defines the long-term goal of the company that oriented to the service end users, to build into a competitive logistics enterprise of high efficient operation, good faith cooperation, high quality service, and standardized management; in addition, to build logistics warehousing center of independent management, to establish improved logistics warehousing and distribution system, to establish sales and distribution channels, and provide strong support for the sales business.

    In accordance with the requirements of the company, the construction work of warehousing system should focus on the long term in addition to based on current. Manzhouli Fareast Gaseses Co., Ltd clearly defines the principle of interim warehousing facility construction as: firstly, meet the requirements of railway transport; secondly, market oriented, close to the logistics center of main regions; thirdly, convenient transportation by close to the railway transportation; fourthly, overall planning and step-by-step implementation.

    Therefore, according to own development conditions and Russian LPG supply capability, Manzhouli Fareast Gaseses Co., Ltd determines to construct 10 sets of 2000 m3 spherical tanks, so as to effectively alleviate the tension of domestic LPG market supply after the completion of the project, and further promote the development of local economy and the petroleum industry in Inner Mongolia and even the whole Northeast China.

Necessity of project investment:

① In order to response to national policies, expand the cooperation with Russia in energy field, and alleviate the increasing demand of domestic market for liquefied hydrocarbon chemical materials, besides the market is very promising.

② Russian train uses broad gauge of 1520mm while our country adopts international standard gauge of 1435mm, so the Sino-Russian railway transport has constraint of open traffic due to different gauges, and transit station must therefore be built in the port for goods delivery.

③ Tank area of the project uses PLC control system while truck loading area uses bulk loading control system, which can improve the safety of the system. Meanwhile, it fully considers the reliability, mainstream, advancement of the system hardware and software, as well as system expansibility and network openness, hardware and software platform of network communication, and its corresponding interface, making the used PLC system not only be able to adapt to current requirements, but also can create conditions of advanced control for the project implementation and senior computer network management for the whole company.

④ The project adopts advanced technology and optimized process, which can reduce material consumption and achieve energy and water saving. Three waste discharge amount involved in the project is very small.