PetroChina, China's largest crude oil and gas producer, today brings the Cangzhou-Zibo gas pipeline into operation.
The pipeline, which broke ground in November 2001, extends from Hebei's Cangzhou to Shandong's Zibo City, with a total length of 213.5 kilometers. It carries natural gas from the Shaanxi-Gansu- Ningxia Basin into east China's Shandong Province.
Sources said that 297 million yuan has been invested for the first phase of the pipeline and it now has an annual handling capacity of 340 million cubic meters. It is expected that after the second-phase investment, the pipeline will have a capacity of 1.05 billion cubic meters a year.
Consumers of natural gas transported by the pipeline will come from the power generation, industrial and town gas sectors of the cities en route.
Apart from PetroChina, Sinopec and CNOOC, another two big oil/ gas producers in China, were also tapping the gas market in the province, said a senior manager from PetroChina.
He noted that the pipeline will have a plentiful and stable gas supply. PetroChina now has proven gas reserves of more than 750 billion cubic meters in the Shaanxi-Gansu-Ningxia basin.