CNPC, Shell to develop, market Northwest China gas

China National Petroleum Corp. and Shell Exploration China Ltd. have agreed to develop a major gas resource in northwestern China along with the infrastructure to transport and utilize the gas.The deal calLs for Shell and CNPC to develop Changbei gas field in the Ordos basin, lay pipelines to move the gas to market in eastern China, and build gas-fired power generation plants in Northeast China that would use the gas.Investments ultimately could total as much as $3 billion under a contrad that the two firms signed in Beijing Sept. 23. Shell, serving as the 1,600 sq km Changbei block operator, will cover all the investment for the gas exploration, production, and pipeline construction. CNP...

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