BP, Exxon, Shell vying for China gas pipeline contract

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.

May 17, 2001

2 min read

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]