Thursday, February 9, 2012

CNPC Vs. SINOPEC: Battle for Natural Gas in Xinjiang China Broke Out

Regarding pipeline constructions, CNPC is currently planning to build 5 pipelines reaching out from Xinjiang, 8 coal natural gas gathering stations, 14 coal to natural gas china market access extensions. The total length of gas pipeline within Xinjiang china is about 6350 km, and the investment in Xinjiang is over 100 billion yuan. 5 pipelines reaching out from Xinjiang include the West-East line No. 3, 4, 5, 6, 7, and the West-East line No. 1 and 2. It is expected that the external transmission capacity in the oil pipeline in the Xinjiang region is about 257 billion cubic meters / year, of which the transmission capacity of coal to natural gas is of 113 billion cubic meters / year.

Sinopec's plan includes two pipelines: the Xinjiang Guangdong Zhejiang pipeline and the Xinjiang Shandong pipeline, the designed gas transmission scale is 30 billion cubic meters / year. If these two pipelines are completed, the coal to natural gas in Xinjiang will be able to be transmitted directly to the Zhejiang market without going through the West-East pipeline. 



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