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To satisfy the ever-growing demand for natural gas, China National Petroleum Corp (CNPC) plans to invest 4.3 billion yuan (US$540 million) to enhance the capacity of the West-East Gas Pipeline.

 

The pipeline's capacity will be increased from 12 billion cubic meters (bcm) to 17 bcm annually.

 

This capacity-boosting project will more than double the number of pumping stations along the line from the current 10 to 22. Most of the existing facilities will also be expanded, said CNPC, China's top oil and gas producer.

 

As parent company of overseas-listed PetroChina, CNPC contributed 70 percent of China's 50 bcm of natural gas production last year.

 

The project has already started and by the end of the year six new pumping stations will be completed with the pipeline's capacity increased to 15 bcm.

 

Experts predict that given China's rapid economic development, the demand for natural gas will continue to rise, reaching 30 bcm next year with the current capacity of the West-East Gas Pipeline simply insufficient to meet such strenuous requirements.

 

"It is an unavoidable trend for the capacity of West-East Gas Pipeline to be enhanced. The country's thirst for cheap natural gas will definitely grow as the oil price keeps surging and environmental concerns prevail," an analyst commented.

 

The expert is confident that with China hammering out more gas import deals with Russia and exploiting more domestic gas resources, supplies for pipeline's added capacity of the are guaranteed.

 

CNPC is close to sealing a deal with Moscow-based Gazprom to build two pipelines to transport up to 68 bcm gas annually from Russia to China. The western line, from Russia's West Siberia to China's Xinjiang Uygur Autonomous Region will reportedly connect with the West-East Gas Pipeline.

 

China is committed to raising the ratio of natural gas in its total energy consumption from the current 3 to 5 percent to between 8 and 10 percent by 2010.

 

The West-East Gas Pipeline pipes natural gas from China's resource-rich west to the energy-thirsty east.

 

(China Daily September 7, 2006)