Asia/Pacific News
Asian Development Bank Announces $450m Loan for LNG, CNG Fuel Infrastructure in PRC
The Asian Development Bank (ADB) Monday announced it has signed loans of up to $450 million to assist with the development of the use of Liquefied Natural Gas (LNG) as fuel for transport in the People's Republic of China (PRC).
The loans are being extended to China Gas Holdings Ltd. which hopes to build and operate up to 20 LNG bunkering stations for river vessels.
In addition, the loans will be used to build 600 Compressed Natural Gas (CNG), 200 LNG refuelling stations along major land transport corridors by 2018.
ADB will provide one dual currency loan of $150 million to be drawn in USD or Yuan as well as a $300 million-equivalent Yuan-only loan.
The PRC has the world's largest inland waterway system, according to ADB, meaning there is significant scope to for the use of LNG bunkers in the PRC's inland waterways.
In addition it holds an estimated 3.1 trillion cubic metre of, as yet, undeveloped gas reserves.
ADB's remit is to lend to poverty reduction and environmentally sustainable development projects in Asia and says the rise of air pollution from Chinese transport is causing problems in the PRC as well as in other parts of Asia.
"Helping motor vehicles, as well as vessels that ply inland waterways, switch from diesel to natural gas will mitigate air pollution, fine particulate matter in particular," said the bank.
ADB also said that supply of gas in the PRC is growing slower than demand.
Bestobell Marine said recently that "the use of LNG as fuel for ships is rising rapidly in China."
