According to Mr Wang Tianpu president of Sinopec as saying that the company will start operating its largest Puguang gas project in October.
Mr Wang did not provide more details in an online interview published on the website of the official People's Daily (www.people.com.cn).
Sinopec announced in 2006 the discovery of Puguang, with proven reserves of 356 billion cubic meters, the largest in China after rival PetroChina 534 billion cubic meters Sulige field in Inner Mongolia. It planned CNY 65 billion of investment for the project.
Gas output from Puguang in landlocked southwestern Sichuan province, with production capacity of 12 billion cubic meters a year, was scheduled to be shipped to more prosperous but energy-thirsty east China including the financial hub of Shanghai via a near 1,700 kilometer pipeline.
China's National Development and Reform Commission in June set the ex factory price for Puguang gas at CNY 1.28 a cubic meter and the cost would amount to some CNY 2 a cubic meter when it arrives in Shanghai.
The Sichuan-Shanghai gas line would be the second largest in China after PetroChina kick started its landmark 4,000 kilometer, 17 billion cubic meters West-to-East gas line in 2004. But both will be dwarfed by a second West-to-East gas pipeline being built by PetroChina that will start pumping gas from central Asia before the end of this year, with a length of over 9,000 kilometers in China alone and annual capacity of 30 billion cubic meters.
(Sourced from www.businessspectator.com)
