Another CNPC source said that the proposed pipeline could end in the industrial belt in the country’s southern and eastern regions.

The Tarim Basin, located in the northwestern region of Xinjiang, is China’s largest oil and gas production base with proven gas reserves of more than 1 Tcm. One of the basin’s new gas fields, with an output capacity of 4 Bcm/a, is scheduled to start production at the end of the month.

The first approximately 4,000 km West East gas pipeline, also carrying gas from Tarim fields, delivers 12 Bcm/a of gas. A second pipeline of approximately 6,500 km, is scheduled to come online in 2011and will transport 30 Bcm/a. A third pipeline is also in planning.