Chinese state-owned integrated petroleum major China National Petroleum Corp. has disclosed plans to lay two long-distance refined products pipe- lines in northeastern China and southwestern China in a bid to establish the country's products pipeline grid.
The pipeline in northeastern China would extend from Daqing and end at either port city of Dalian or Qinhuangdao, with a total length of around 1,000 km and diameter of 426 mm. This pipeline, scheduled for completion in 2010, is intended to eliminate a transportation bottleneck that long has plagued northern China, where refining capacity far exceeds local demand. Capacity wasn't disclosed for this pipeline.
However, estimates are that, by 2010, refined products capacity in northern China will grow to 560,000 b/d, while demand will remain at about 400,000 b/d. The oversupply will emanate mainly from refineries at Fushun Petrochemical Works in Liaoning (60,000 b/d) and Daqing Petrochemical Corp. in Heilongjiang (100,000 b/d).
From the Liaoning refinery, an existing 254-km products pipeline from Fushun to the port city of Bayuquan, transports refined products from three refineries under Fushun Petrochemical Works, whereas, in Heilongjiang, the refineries have to depend on the obsolete rail system for products distribution.
The proposed pipeline in southwestern China would extend from Lanzhou or Wuwei in Gansu Province to Chengdu in Sichuan Province. The distance between Lanzhou and Chengdu is 900 km, and 1,150 km between Wuwei and Chengdu. With capacity planned at 200,000 b/d, this pipeline can help to ease supply shortages in southwestern China, where there are no refineries.
Government forecasts estimate that, by 2010, refined products demand in Guangxi, Yunnan, Guizhou, Sichuan, and Chongqing provinces will top 400,000 b/d.
CNPC's Oil & Gas Pipeline Bureau (PLB) has finished feasibility studies for the two pipelines and submitted the studies to CNPC for scrutiny.
When approved, the pipelines will be designed, constructed, and operated by PLB.
Lack of pipelines
China lacks an integrated refined products pipeline grid.The country transports 70% of the refined products it consumes by rail, 21% by road, 8% by waterborne barge or tanker, and only 1% by pipeline.
Most of China's existing refined product pipelines are of small diameter, covering short distances and having limited capacities.
The combined length of the country's products trunk line system is 1,718 km.
The longest pipeline, which extends 1,080 km from Golmud to Lhasa, has a capacity of 29,000 b/d.
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