"The project will make use of CBM in a more economic way and supplement sources for the west-east gas pipeline and ease the gas supply strain," the country's largest oil and gas producer said in a statement. The statement added that natural gas supplies will fall 60bn cum short of demand in China by 2010. The pipeline originates at Jinfeng Village, Qinshui, and terminates at the Qinshui pump station on the W-E gas pipeline. Welding work began on 6 June. Coal-bed methane has frequently led to deadly mine explosions in China. The government has been encouraging the use of the gas as fuel or for power generation and chemical production since the 1990s. As at the end of April, CBM-to-power plants had a total installed capacity of 710MW, an increase of 137% from the end of 2005, according to the energy bureau of the National Development and Reform Commission.