BASF has signed a joint development agreement with China BlueChemical Limited Company, a leading natural gas producer, and the chemical engineering company Wuhuan Engineering Co., Ltd. to promote low-carbon development and utilization of marine gas resources.

In the Dongfang Industrial Park of Hainan Province, China BlueChemical extracts large quantities of such offshore natural gas (marine gas) from gas fields in the South China Sea. Marine gas, unlike commercial natural gas, contains high concentrations of CO₂. The gas requires CO₂ removal to be usable for downstream large-scale applications.

The process of separating CO₂ from natural gas not only increases energy consumption, but also contributes to yield loss and direct carbon emissions. These issues limit the systematic development and utilization of natural gas with high CO₂ content.

BASF will leverage its extensive expertise in catalyst development and will collaborate with the two companies to solve these challenges. Through technical innovation in reforming catalysts, special reactor design and related process technology development, BASF’s solution will improve process energy efficiency and carbon efficiency beyond existing commercial catalyst and process technology.

The partnerships will promote lower-carbon development and utilization of marine gas resources, and ultimately achieve an economically competitive and environmentally friendly commercial process.

Combining the advantages of our oil and gas development capacity in the South China Sea and BASF’s expertise in catalyst technology, we hope to seize the opportunity to establish a good strategic partnership for cooperative development of green and low-carbon footprint using marine gas.

—Wang Weimin, Chairman of China BlueChemical Limited Company