On June 7, the Liquefied Natural Gas Project with daily capacity of 600,000 cubic meters was laid its foundation stone with ceremony in Yinchuan Economic and Technological Development Zone. The Project was cooperatively developed by Ningxia Fu'ning Investment Group Co., Ltd and Xin'ao Gas Development Co., Ltd. Leaders of the autonomous region and Yinchuan Development Zone with more than 200 people in charge of concerned departments attended the foundation laying ceremony. These include the member of the regional Party Standing Committee and vice chairman of the government, Qi Tongsheng; deputy director of the autonomous regional people's congress, Liu Tiangui; vice-chairman of CPPCC, Xie Menglin; mayor of Yinchuan, Wang Rugui, member of Party Standing Committee of Yinchuan, secretary of the Party the Workers' Committee of the development zone, director of the Management Committee Li Zefeng, deputy director of the Management Committee, Gao Zhongtong and Chen Wei, etc.

The project was located in the second area of Yinchuan Economic and Technological Development Zone, covering 120 mu and with a total investment of RMB yuan 260 million. The construction was planned in two phases. The first phase will involve an investment of RMB yuan 160 million, and the designed daily capacity is processing 30 cubic meters of natural gas and producing 210 tons of liquefied natural gas, which is expected to be completed and put into production in February 2009. At the same time, it is planned to invest another RMB yuan 100 million to deal with the second phase with the same scale. After the completion of both phases of the project, the daily processing capacity will achieve 60 cubic meters of natural gas with an annual output of 140,000 tons of liquefied natural gas. The project adopted domestic advanced technology with a high degree of automation, which is energy-saving and highly efficient. Its production process is to transform natural gas into liquid through purification and cooling, reducing the size of natural gas to 1 / 625 of the original volume. It will greatly save storage space and transport cost with the characteristics of high heat value, high-performance, cleaner and good antiknock properties. It will complement pipeline natural gas and be widely used in residential fuel, vehicle fuel, electricity, chemical industry, metallurgy, ceramics, glass and other fields. It is a green energy with high efficiency and environment friendly, which has a broad market prospect.