|
 | Thursday, April 27, 2000, updated at 16:12(GMT+8) | ||||||||||||
|
Business | ||||||||||||
|
Plant to Power West EconomyChina's first natural gas power plant is to be developed in the northwest of the country.According to the blueprint, the power station is designed to be equipped with four generating sets and become a medium-sized power station. The only fuel needed in the power generating process is natural gas, which is hidden under a wide gas field in Northwest China's Shaanxi Province. The natural gas field, known as Shenmu Field, has proven deposits of 420 billion cubic metres, making it the largest in Asia. The construction project will cost US$700 million. Meiya Power Co Ltd, an international energy developer, has shown great interest in the project. The company intends to invest US$600 million, or 85 per cent of the capital needed, in the project. The remaining 15 per cent will be funded by the Shaanxi Company of China National Zhenglian Industrial Corporation. The two were to sign a co-operation agreement yesterday at the Investment and Trade Forum in Xi'an. The primary agreement is the first step, with the next stage relying on other factors such as government policy. "If everything goes smoothly, our co-operation will last 20 years," said Li Guangquan, general manager of the company. According to Li, the construction of the power plant will take three years, and the investment will be paid out in 10 years. "The yield of the investment will be satisfying," he predicted. Sources from Meiya Power Company gave a much more conservative view, saying that the yield might be lower than expectations. The Chinese Government has supported the project by offering some tax-breaks and a certain amount of subsidy for the investors. Meanwhile, the accelerated development in the Northwest will also increase the region's power consumption, which gives great prospects for the power plant. According to recent research carried out by the Northwest Power Administration Bureau, demand for electricity will see a two digit growth by the end of this year. And the load in the power system in northern Shaanxi will increase by 356 per cent in the coming five years. "Our power plant, established directly on the gas field, will play a major role in making the most of our natural gas resources," said Li. Statistics from the provincial government revealed that only one-third of the natural gas produced was used over the last year. The power plant, designed to use 1.1 billion cubic metres of gas annually, will make use of gas which would otherwise go to waste. Li did not reveal when the construction will begin, saying it was up to the central and local governments. The power plant will bring no harm to the fragile environment in the region, experts say. The joint venture will help the local government improve lives for the impoverished local residents living in a harsh environment.
 In This Section 
| ||||||||||||
| ||||||||||||||||||||||||||||
| Copyright by People's Daily Online, all right reserved | | Mirror in U.S. | Mirror in Japan | Mirror in Edu-Net | Mirror in Tech-Net | |
