Esso joins study of big Asian gas pipeline

Exxon Corp.'s Esso China Inc. has agreed to help China National Petroleum Corp. (CNPC) and Mitsubishi Corp. of Japan study the feasibility of laying a large gas pipeline in Asia. Capacity of the system is expected to be among the largest in the world. The pipeline under consideration would stretch east more than 3,700 miles from Turkmenistan, crossing Kazakhstan and major petroleum basins in China en route to China's Pacific Coast. The system could be extended from there another 1,200

Aug. 28, 1995

Exxon Corp.'s Esso China Inc. has agreed to help China National Petroleum Corp. (CNPC) and Mitsubishi Corp. of Japan study the feasibility of laying a large gas pipeline in Asia.

Capacity of the system is expected to be among the largest in the world.

The pipeline under consideration would stretch east more than 3,700 miles from Turkmenistan, crossing Kazakhstan and major petroleum basins in China en route to China's Pacific Coast. The system could be extended from there another 1,200 miles to serve markets in Japan, possibly by way of a route through South Korea.

Starting next month in the study's next phase, Esso China, CNPC, and Mitsubishi during the next year will focus on pipeline costs and possible routes. The companies also will identify gas resources and markets to support the project, estimate volume requirements, and begin setting up the timing for the project.

If second phase economic analyses show the project is viable, study participants will define the scope of work leading to development.

CNPC and Mitsubishi Corp. have been evaluating the project since late 1992.