Sinopec to build gas pipeline in Shandong

By an OGJ Online Correspondent

BEIJING, Sept. 18 -- China Petrochemical Corp. (Sinopec) plans to build a natural gas pipeline network in eastern China's Shandong province.

The company signed a framework agreement last week with Shandong Development Planning Committee to jointly build gas pipelines and develop the natural gas market in the province.

Sinopec's Henan province subsidiary Zhongyuan Oil Corp. will spearhead the gas distribution projects in Shandong. Zhongyuan is Sinopec's second largest gas producer, after Sinopec Star Corp.

Sinopec also intends to transport natural gas from the Tarim basin through PetroChina Co.'s 4,000-km gas pipeline to Shandong.

Sinopec decided to take an 8%-10% stake in the $4.8 billion gas pipeline, slated to begin construction later this month or early next month (OGJ Online, July 25, 2001).

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