Discover ENGIE activities in China
Leveraging on the Group’s know-how and solutions, ENGIE aims at becoming a benchmark player in China’s energy transition, developing decarbonized, decentralized and digitalized solutions in the areas of Renewable Energy, Green Gas, Green Mobility and District Cooling & Heating Networks, as well as facilitating ENGIE and Chinese companies to jointly develop projects in third-party markets. ENGIE in China is thus striving to contribute to Chinese fight against air pollution and help cities to overcome their sustainability challenges.
ENGIE’s Strategy in China
ENGIE’s energy transition focuses on the decentralization of energy production and solutions, the application of digital technology in the energy sector and the expansion of low carbon energy (gas and renewables). This strategy and this vision impact positively ENGIE’s activities in China, because it is fully in line with the vision of Chinese leaders on future energy structure: “to build a clean, low carbon, safe and efficient modern energy system”.
ENGIE presents its strategy in the Chinese market around the following aspects:
- Renewable Power, such as solar PV, concentrated solar power (CSP), wind power and small hydro.
- Green Gases, such as biogas and hydrogen related activities.
- Solutions for Territories & Industry: such as CCHP/CHP (Combined Cooling, Heating, and Power Systems/Combined Heat and Power) district heating & cooling, EV charging, smart building services and energy efficiency services
Moreover, ENGIE in China also supports the Group:
- By developing joint projects with Chinese partners in third-party countries (in line with Chinese government's "Belt and Road" initiative).
- By optimizing the Group's purchases through sourcing equipment and services from China.
ENGIE’s Solutions in China – Helping Cities to Overcome Sustainable Challenges
- Natural Gas Supply - ENGIE guarantees Beijing Energy Supply
August 2016, ENGIE and BGG concluded a 10-cargo LNG supply deal, serving as the supplementary source of natural gas for Beijing 2016-2017 winter season. On Nov. 27, 2016, the first cargo arrived and unloaded at PetroChina’s Caofeidian LNG receiving terminal.
- Equity Investment - Develop renewable energy in China for a low carbon future
On April 18, 2017, ENGIE China signed an Agreement for a 30% equity investment through capital increase in UNISUN, a solar photovoltaic company in China. UNISUN developed ~550MW PV projects in total by the end of 2017 (incl. 450MW PV projects in 2017 alone), including grid-scale and distributed solar.
- Distributed energy supply for higher energy efficiency
Chongqing Danzishi CBD district cooling and heating energy station is owned, constructed and operated by SinoFrench Energy Services Co., Ltd (co-established by Chongqing Gas Group and ENGIE). This energy station uses the renewable Yangtze River water as resource, natural gas as fuel, and water source heat-pump as technology, to provide integrated energy supply services such as cold, heat, hot water and electricity for 800,000 square meters building in CBD area.
- Going global with Chinese Players
ENGIE has been closely collaborating with Chinese EPC and equipment suppliers in projects overseas for several years. Jirau Hydropower Plant (3,750 MW) in Brazil as the project’s shareholder, ENGIE cooperated with DEC (Dongfang Electric Corporation) and ENGIE Tractebel to provide full Manufacture Inspection Service for the 22 turbine generators manufactured by DEC in China for this facility. The Jirau hydropower plant, the largest in Brazil, was inaugurated on Dec. 16th, 2016.
- Technology Transfer - ENGIE’s low NOx technology helps to fight air pollution in Beijing
To help Beijing deal with air pollution, ENGIE China joins hands with its joint venture BUGET to carry out the first gas boiler house renovation in the Capital Normal University’s Kede College, in Beijing, using the Low NOx Technology.
This Low NOx technology has a triple advantage: Improve the boiler’s thermal efficiency, reduce efficiently NOx emissions and lower investment and operation costs compared to other flue gas waste heat recycling devices. In mid-February to early March 2017, ENGIE technical team took part to the commissioning of the renovated boiler and obtained stable and satisfying results:
- The NOx emissions monitored amount 23 mg/m3, meeting Beijing government’s highest emission standards, which shall be less than 30 mg/m3.
- A similar performance than the one of a heat recovery boiler system equipped with a heat pump, however, with an investment cost reduced by nearly 50%.
ENGIE in China – Timeline
1885: ENGIE (Gaz de France) signed a Gas Cooperation Agreement with Beijing Municipal Utilities Bureau.
1991 - 2000: ENGIE (Gaz de France) signed several Gas Engineering Contracts in Beijing, Chengdu, Xian and Shanghai.
In 1996, ENGIE (Gaz de France) designed industrial gas liquefaction Installation for Chinese client in China.
2008: ENGIE (GDF SUEZ) Representative Office established in China (Beijing)
2009: ENGIE (GDF SUEZ) started its Energy Services in China: first heating and cooling network in Chongqing.
2010: ENGIE (GDF SUEZ) started LNG supply business in China: first LNG cargo delivered to the Shanghai LNG terminal.
2011: ENGIE (GDF SUEZ) started LNG supply business in China: first LNG cargo delivered to the Shanghai LNG terminal.
ENGIE (GDF SUEZ) signed a worldwide partnership with the Chinese sovereign fund CIC granting the latter a 30% share in ENGIE’s (GDF SUEZ) exploration and production activities. ENGIE (GDF SUEZ) sold 2.3 million metric tons of LNG to the China National Offshore Oil Corporation (CNOOC), with deliveries beginning in 2013.
2012: ENGIE (GDF SUEZ) began cooperation with PetroChina to explore the upstream gas potential in Qatar.
2013: ENGIE (GDF SUEZ) started the provision of underground gas storage expertise services in China with PetroChina (technical support for evaluating six gas storage sites of PetroChina).
ENGIE (GDF SUEZ) cooperated with CNOOC - Arrival of the first floating LNG regasification terminal in China (for CNOOC in Tianjin).
ENGIE (GDF SUEZ) signed a Project Management and Consulting contract for the Shanghai Wuhaogou LNG terminal expansion work.
ENGIE (GDF SUEZ) also provided engineering and training services for various gas companies in China, notably in the field of gas distribution and LNG.
2014: ENGIE (GDF SUEZ) signed a cooperation agreement with Beijing Enterprise Group (BEG) to develop natural gas and energy efficiency projects in China. Chinese and French Presidents XI Jinping and François Hollande were present at the signing.
2015: ENGIE’s first LNG cargo for Beijing city unloaded in Caofeidian terminal, aiming to contribute to Beijing city’s gas demand during the winter season. This delivery was the first case, among all Chinese LNG buyers, of third party reception and further transport in pipeline infrastructures and, as such, a clear sign of the steps taken by Chinese Authorities towards open and fair access mechanisms.
ENGIE signed also several major agreements with Chinese partners, such as: China Investment Corporation (CIC), Beijing Enterprises Group (BEG), China Huaneng Group, Shanghai Shenergy Group, Chongqing Energy Investment Group, and Sichuan Energy Investment Group etc. These agreements express the ambition of ENGIE to pursue its growth through partnerships and cooperation with key Chinese partners, not only in China, but also abroad. Those global agreements consider the entire energy value chain: power, natural gas and energy services, with a specific focus on efficient and innovative solutions able to take on the challenges of the energy transition to a low-carbon economy.
2016: August 2016, ENGIE and BGG concluded a 10-cargo LNG supply deal, serving as the supplementary source of natural gas for Beijing 2016-2017 winter season. On Nov. 27, 2016, the first cargo arrived and unloaded at PetroChina’s Caofeidian LNG receiving terminal.
2017: ENGIE China signed an Agreement for a 30% equity investment through capital increase in UNISUN, a solar photovoltaic company in China. This investment represents for ENGIE the opportunity to step in the world’s biggest and most promising renewable power market. It demonstrates once again the ambition of ENGIE to be the leader of the energy transition in the world.