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China's second west-to-east gas pipeline is expected to be built within the next five years.
China's second west-to-east gas pipeline is expected to be built within the next five years.
Discussions have begun on China’s second west-to-east gas pipeline. Yesterday, an insider from a major state-owned
Discussions have begun on China’s second west-to-east gas pipeline. Yesterday, an insider from a major state-owned oil company said that experts are currently considering a plan under which, building on the introduction of overseas gas sources—or starting from new gas reserves in the Tarim Basin—the construction of China’s second west-to-east gas pipeline, along with land-based oil and gas import pipelines, could be launched within five years, extending from Qinghai through Sichuan to Huguang.
In early November, the State Council published on the website of the National Development and Reform Commission (NDRC) the “Notice of the State Council on the Division of Responsibilities for Implementing the Main Goals and Tasks of the 11th Five-Year Plan for National Economic and Social Development of the People’s Republic of China” (hereinafter referred to as the “Notice”). The “Notice” stated that during the 11th Five-Year Plan period, the NDRC would take the lead in implementing several key energy projects, including “the Second West-to-East Gas Pipeline and Land-Based Oil and Gas Pipelines for Imports.” This confirms the two major projects that PetroChina has been reportedly planning. Yesterday, the same source, speaking at the Third China-Russia-Kazakhstan Oil and Gas Forum, indicated that if production in the Tarim Basin were to increase further and natural gas from Novosibirsk and the Middle East were to be brought in, another pipeline would be built from Qinghai through Sichuan all the way to Huguang. When asked by a reporter whether this was the route of the Second West-to-East Gas Pipeline, the source revealed after his speech at the forum that this was still under discussion and had not yet been officially approved. In addition, several other key energy projects—including the National Petroleum Reserve Base and the West-to-South Finished Oil Pipeline—will also be launched one after another during the 11th Five-Year Plan period.
China’s first “West-to-East Gas Pipeline” main line originates in Lunan, the Tarim Oilfield in Xinjiang, and runs through Xinjiang, Gansu, Ningxia, Shaanxi, Shanxi, Henan, Anhui, and Jiangsu before finally reaching Baihe Town in Shanghai. The entire pipeline was completed and put into operation on October 1, 2004.
A senior official from Shaanxi Natural Gas Co., Ltd. told the First Finance Daily that although the first West-to-East Gas Pipeline passes through Shaanxi Province, Shaanxi itself is not its primary market. “The state has been conducting preliminary feasibility studies for the construction of a second West-to-East Gas Pipeline, but our company hasn’t yet seen any new documents,” he said. Currently, Shaanxi Province faces a significant gas shortage; this year’s actual demand stands at 1.3 billion cubic meters, while actual consumption has been between 1.2 billion and 1.25 billion cubic meters. If the state officially begins constructing the second pipeline, it will undoubtedly boost natural gas demand in Shaanxi and other provinces and cities along the pipeline route. However, he himself is currently unclear about the specific route of the new pipeline. Huang Meilong, an analyst at Sinolink Securities, pointed out that the first West-to-East Gas Pipeline has long suffered from insufficient gas supply and underutilization, making the construction of a second pipeline entirely reasonable. “China may also consider launching a project to pipe gas from Sichuan to eastern regions.”
Keywords：West-to-East Gas Pipeline,Line,Petroleum
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