BP, Exxon, Shell vying for China gas pipeline contract

May 17, 2001
BP PLC, Royal Dutch/Shell Group, and ExxonMobil Corp. each told OGJ Online Thursday that they are competing for the nod from PetroChina Co. Ltd. to build a 4,200 km gas pipeline across China. The pipeline would run from Xinjiang to Shanghai. BP and ExxonMobil are leading separate consortia on the project.


Paula Dittrick
OGJ Online

HOUSTON, May 17 -- BP PLC, Royal Dutch/Shell Group, and ExxonMobil Corp. each told OGJ Online Thursday that they are competing for the nod from PetroChina Co. Ltd. to build a 4,200 km gas pipeline across China.

The pipeline would start in Xinjiang and end in Shanghai. Preliminary indications are that the pipeline would have a throughput of 12 billion cu m/year (OGJ Online, Apr. 27, 2001).

BP submitted a proposal on behalf of a consortium that includes itself and three Japanese companies, Mitsubishi Heavy Industries of Tokyo, Itochu Corp. of Osaka, and and Nissho Iwai Corp. of Osaka, a BP spokesman in London said.

"It's what we call an initial investment proposal. It's not a bid, but it's more a concept proposal," the BP spokesman said, adding it was too early to say how much the pipeline will cost.

ExxonMobil Corp., Irving, Tex., submitted a proposal in conjunction with China Light & Power of Hong Kong, an ExxonMobil spokesman in Houston confirmed, adding he had no other details.

Shell also confirmed it had made a proposal on its own. "We have talked to other people but we haven't created a formal consortium," a Shell spokesman in London said.

PetroChina officials have suggested pipeline construction could start in October with gas deliveries to Shanghai as early as 2003.

Contact Paula Dittrick at [email protected]