The project to open up Western China has brought new opportunity for the development of Qaidam Basin in Qinghai Province.

Since 1996, Qinghai has strengthened the exploitation of natural gas in Qaidam Basin. In the last four years, it has built three gas pipelines to Golmud City and Dunhuang City in Gansu Province. Over a total distance of 637 km, the pipelines can transport 1.5 billion cubic meters of natural gas a year. The pipelines will further be extended to Xining and Lanzhou in this year.

It is reported that 120 out of 240 thousand square kilometers of Qaidam Basin have been prospected, and eight gas fields including Shebei, Tainan and Mahai has been found. There are 157.5 billion cubic meters of natural gas resources that have been proven in this area.