Sinopec launches Sichuan-Shanghai gas pipeline

China Petroleum & Chemical Corp. (Sinopec) said it has started transporting natural gas through the recently completed $9.4 billion Sichuan-Shanghai pipeline.

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Mar. 30 -- China Petroleum & Chemical Corp. (Sinopec) said it has started transporting natural gas through the recently completed $9.4 billion Sichuan-Shanghai pipeline.

According to Sinopec Chairman Su Shulin, the 1,655-km trunk line can transport 12 billion cu m (bcm)/year of gas from Puguang gas field in Sichuan province to Shanghai and eight other provinces or municipalities along the way.

In addition to the main line, Su said development of the project also involved exploration and development of Puguang field, construction of acidic gas treatment facilities, and five branch lines.

To secure ample supplies of gas, Su said Sinopec has been exploring areas adjacent to Puguang, and has confirmed 451.8 bcm of gas reserves. Sinopec also has discovered 464.8 bcm of probable gas resources and 575 bcm of possible gas reserves.

Earlier this month, Zhou Yuan, Sinopec senior consultant, said the state firm plans to produce 4 bcm of gas from Puguang field and transport it to eastern China via the new line this year.

Zhou said Puguang output alone will increase Sinopec's overall gas production by 50% in 2010, as well as create a major revenue stream for the company amid growing gas demand.

Puguang is Sinopec's largest gas field, according to Zhou, who added that the proved reserves of the field and nearby areas come to 489 bcm.

According to Zhou, Sinopec has completed well-drilling and construction at 16 gas-collecting substations, one main gas collecting station, and gas desulfurization unit with a 12 bcm/year capacity.

In October, Sinopec said production from Puguang in 2010 would reach 4 bcm, rising to 8 bcm in 2011. Puguang has a production capacity of 10.5 bcm, which Sinopec said will allow the field to maintain a stable output for at least 20 years.

Contact Eric Watkins at hippalus@yahoo.com.

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