China 's Hainan Province is seeking foreign investment jointly to build and operate the second and third segments of an integrated natural gas pipeline grid.
The 700-km pipeline will ring the island province, passing through 12 cities and counties from Shanya to Qionhai.
The 2.2-billion-yuan pipeline system is divided into three segments, with the first segment brought on line in 1996. This segment, extending 116 km from Shanya to Dongfang, has the capacity to transport 500-700 million cu m/year of gas. This segment has been transporting gas from an offshore pipeline terminus that delivers gas produced from Yacheng 13-1 gas field, operated by ARCO and China National Offshore Oil Corp. (CNOOC) in the South China Sea, to an onshore ammonia plant since 1996.
The completed three segments will have a total transportation capacity of 3-5 billion cu m/year of gas.
Project details
Foreign companies can participate in the construction of the second and third segments through direct investment or technology transfer.
The second segment, spanning 300 km from Dongfang to Haikou, the provincial capital, will transport gas from Dongfang 1-1 gas field, currently under development by CNOOC in the South China Sea, to residential and industrial consumers along the route. It will have a throughput capacity of 2.8 billion cu m/year.
Construction of the second segment began in 1999. Completion is scheduled for 2002, 2 years later than originally scheduled because of a lack of funds and a delay in the gas field's development. At Dongfang 1-1, CNOOC has confirmed gas reserves of at least 100 billion cu m. The field's start-up is expected in 2002.
The island province does not have a timetable for construction of the third segment of the pipeline, expected to extend 300 km from Shanya to Qionghai. The central government has not yet approved this segment; it will transport gas from Ledong 15-1 gas field in the South China Sea, which is currently being appraised for possible development by CNOOC and a unit of ARCO.
CNOOC produced 4.39 billion cu m of natural gas in 1999, 95% of which was produced from Yacheng 13-1 field.
