CHINESE energy giant Sinopec has received official approval to construct a new gas pipeline to export gas southwards from its gas-rich SW province of Sichuan. “As reserves from Sichuan’s Puguang gasfield prove to be larger than expected, we have been given the green light to pipe gas from Sichuan to ... the Pearl River Delta,” the China Daily quoted a company source as saying. The source said the project was approved by the National Development and Reform Commission, China’s top economic planning agency.
"By the end of 2009, Sinopec may supply natural gas to Guangdong, Hong Kong, and Macau," the source added.
Sinopec is understood to have "partly" confirmed the plan, with the only uncertainty being whether the gasfield could provide sufficient supply. "We do have such a plan but the prerequisite is that there should be enough gas extracted from the Puguang gasfield (to feed both the Yangtze River and Pearl River Delta areas)," said Huang Wensheng, the company's spokesman. Previous reports said Sinopec had already started to build a pipeline from Puguang to the eastern business hub of Shanghai, with annual delivery expected to reach 1.9bn cum upon completion in 2010. Mr Huang said the Puguang field was likely to yield more natural gas than previously estimated, but he did not give a specific figure.
The Puguang field reportedly has proven reserves of 356bn cum, making it the second largest in the country. It is expected to produce 15bn cum/yr from 2009. The pipeline will have a total length of 2,800km, with the main line running 1,647km from Puguang to Shanghai, and four branch lines extending to Chongqing, and the provinces of Henan, Sichuan, and Jiangsu.
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