Sinopec to build two gas pipelines in eastern China by 2005

By an OGJ Online Correspondent

BEIJING, Nov. 26 -- China Petroleum & Chemical Corp. (Sinopec) plans to build two natural gas pipelines in Shandong province by 2005.

The lines will cost a combined 1 billion yuan ($120 million) and will be able to move 4 billion cu m/year of gas.

Sinopec unit Zhongyuan Oil & Gas Co. will manage construction.

Sinopec has signed letters of intent with industrial and household users in Jinan, Zibo, Weifang, and Qingdao for 4 billion cu m/year.

One line will start at Zhongyuan oil and gas field at Puyang, supplying Jinan and Zibo and ending at Qingdao.

The second will also start at Puyang, serving Heze and ending at Laiyang. This is a branch of the 4,000-km Xinjiang-Shanghai gas pipeline that PetroChina Co. plans to build. Sinopec will acquire a stake in that line to move gas from its Tarim basin fields.

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