Xinhua quoted that PetroChina China leading oil and gas producer said the Sebei Xi'ning Lanzhou natural gas pipeline is to start formal operation of new parallel line in mid December with a total transportation capacity of 6 billion cubic meters per year.

As per report, the old Sebei-Xi'ning-Lanzhou natural gas pipelines a single line with a total length of 953 kilometers remains in operation. It was completed in late 2001 with a designed transportation capacity of 3 billion cubic meters per year.

The new pipeline, built in parallel with the old pipeline with investment of CNY 3.678 billion links gas fields in Sebei with Qinghai province capital city Xi'ning and Lanzhou, its counterpart in Gan su province.

Mr Hu Wanzhi a PetroChina official in charge of the pipeline said the streaming of the 945 kilometer long gas pipeline would provide a n outlet to pipe out the Qaidam Basin's abundant natural gas reserves of which an estimated 230 billion cubic meters is recoverable.

He said the pipeline would also serve as reliable source for the West to East natural gas pipeline to fulfill fast-growing downstream demand. It will also secure the gas supply to Qinghai and Gansu provinces in the northwestern China.

(Source from iStockAnalyst)