China National Offshore Oil Corp. Ltd. (CNOOC) has fully connected its 5-billion cu m/year Shen’an coalbed methane pipeline and declared it ready for operation. The 623-km pipeline starts in Shenmu, Yulin City, Shanxi Province and ends at Anping County, Hengshui City, Hebei Province.
CNOOC says pipeline startup will help maximize natural gas production from Qinshui basin and the eastern edge of Erdos basin, both of which face relatively low well productivity and relatively high production costs. As of end-2021 the two production areas represented 1.5% of its total reserves and 2.0% of its production, according to CNOOC.
Zhonglian Huarui Natural Gas Co. Ltd. built and will operate Shen’an pipeline. China United Coalbed Methane Co. Ltd., a wholly owned subsidiary of CNOOC, holds 51% interest in Zhonglian Huarui. Huasheng Xinneng Gas Group Co. Ltd. holds the remaining 49%.