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China Completes Preparations for Constructing of West-east Gas Pipeline
China has completed the preparations for the construction of a planned natural gas pipeline that will extend 4,000 kilometers from the west to the east of the country, official sources said on Monday.
According to the third meeting of the state leading group of the pipeline construction project, which concluded in Shanghai Monday, the feasibility studies of the project has made major progress. The country is to embark on the construction of a few sections of the pipeline on a trial basis soon.
Zhang Guobao, head of the leading group and vice-minister in charge of the State Development Planning Commission, said that foreign companies bidding for the project have been short-listed and relevant parties are to sign a framework agreement on joint ventures in the near future.
He said that the Chinese owner of the pipeline and the international investors have already reached an initial agreement on the form of cooperation, profit sharing of upper-end products, distribution, split of investment and financing.
Zhang noted that Tarim in the Xinjiang Uygur Autonomous Region in west China has already found adequate natural gas deposits for maintaining a stable supply. An additional deposit of 100 billion cubic meters of natural gas is expected to be affirmed soon.
He said that the planning of the pipeline has been updated, with the total length shortened by 167 kilometers.
Zhang said that the end users are giving confirmations on the quantities required and ways of using the piped natural gas at present. Most of the end users will be urban residents, public facilities, central heating suppliers, generators for peak time power supply, manufacturers and liquid natural gas-fueled automobiles.
He said that local networks of natural gas pipelines in Shanghai City and Zhejiang, Anhui and Jiangsu provinces in east China and Henan province in Central China have already gone through feasibility studies. Some of the localities have already started construction of local pipeline networks.
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