CNPC to build Jiangsu-to-Shanghai gas pipeline

China National Petroleum Corp. (CNPC) has signed a cooperation framework agreement with Shenergy Group and Yangkou Port Co. Ltd. to build the Rudong-Haimen-Chongming natural gas pipeline. The 89.5-km pipeline will deliver 2.4 billion cu m/year from Jiangsu province to Chongming Island in Shanghai.

The line will serve as the third major source of gas for Shanghai after the first and second West-East Gas Pipelines. It will also transport regasified LNG from terminals at Rudong when needed.

PetroChina commissioned its 3.5-million tonne/year Rudong terminal in 2011, beginning with a cargo in May from QatarGas and completing the process in November. PetroChina’s first LNG terminal in China, Rudong is expected to be supplied mainly from Australia’s Gorgon project, scheduled to start producing in 2014 (OGJ, Apr. 2, 2012, p. XX).

CNPC, Shenergy, and Yangkou Port will jointly build and operate the pipeline and expect it to enter service in 2014.

Contact Christopher E. Smith at chriss@ogjonline.com.

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