PetroChina signs MOUs with foreign consortiums on gas pipeline

PetroChina Co. Ltd. signed memorandums of understanding with four foreign consortiums July 24 on investment in construction of a major gas pipeline. Seven consortiums had originally applied (OGJ Online, June 6, 2001).


By an OGJ Online Correspondent

BEIJING, July 25 -- PetroChina Co. Ltd. signed memorandums of understanding with four foreign consortiums July 24 on investment in construction of a major gas pipeline.

Seven consortiums had originally applied, and several were shortlisted earlier this year (OGJ Online, June 6, 2001).

The proposed 4,000 km line will link Xinjiang's Tarim basin in the west and Shanghai city in the east.

The four are a consortium of Shell International Gas Ltd. and Hong Kong & China Gas Co. Ltd; a consortium formed by BP Global Investment Ltd., Malaysia's Petronas, and Nissho Iwai Corp.; a consortium of ExxonMobil China Gas Pipeline Ltd. and CLP Enterprises Ltd.; and a consortium of OAO Gazprom and Stroitransgaz of Russia.

Mitsubishi Corp. and Itochu Corp. have quit the BP consortium.

The signing of memorandums will be followed by separate negotiations with the four. Pipeline construction should begin in late September or early October.

The government has yet to approve the feasibility study of the project, which includes the pipeline construction, natural gas development at Tarim basin, and gas marketing in eastern China.

Foreign investors are allowed to hold a majority stakes in the pipeline, but only a minority stake in the gas development at Tarim.

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