BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR PRIVACY & COOKIE NOTICE
X


CNPC completes China's first 30 Bcm/year synthetic coal gas pipeline

Singapore (Platts)--16 Jul 2013 126 am EDT/526 GMT


State-owned China National Petroleum Corp said Tuesday that it has commissioned China's first dedicated synthetic coal gas pipeline in western Xinjiang province.

The 30 billion cubic meter/year Yining-Horgos pipeline passes through Yining city and Huocheng county in Xinjiang. Construction of the 64-km pipeline started in May 2011, and inspections and certifications wrapped up this May. It cost Yuan 996 million ($162.3 million).

The company said it successfully flowed gas from its Second West-East gas pipeline into the Yining-Horgos pipeline on July 10.

Article continues below...


Request a free trial of: International Gas Report International Gas Report
International Gas Report

International Gas Report is a biweekly report that intelligently analyzes what is happening in the natural gas industry, improving your vision and sharpening your competitive edge. Through its unrivalled network of global correspondents, it covers the whole gas chain, from the well-head to the burner tip, in Asia, Europe, the Middle East, Africa and the Americas, including gas transport, regulation and the ever-present problems posed by shifting geopolitical concerns.

Request a trial to International Gas Report Request More Information


However, the new pipeline will ultimately connect to CNPC's Third West-East gas pipeline, where construction started in October. That pipeline is slated to be fully operational by 2015.

The Yining-Horgos pipeline's main function is to transport synthetic coal gas supplies from coal-to-gas producers in Xinjiang to the Third West-East gas pipeline. It will also transmit up to 5 Bcm/year of gas to customers along its route before reaching the Third West-East pipeline, CNPC said, without giving a timeline.

Before the coal-to-gas projects start producing, however, the Yining-Horgos project will be a reverse-flow pipeline, supplying these coal-to-gas plants' intended customers with imported Central Asian gas from the Third West-East pipeline, the company said, again without saying when the projects would start.

The $20 billion Third West-East pipeline will have capacity of 30 Bcm/year and will start in Horgos in Xinjiang on the border with Kazakhstan -- the same starting point as the Second West-East pipeline. It will link up with the Central Asia-China gas pipeline network and transport Central Asian gas from western China to the eastern coast, with multiple spurs along the way.

CNPC signed a strategic cooperation agreement with the local government in Xinjiang last December, pledging to develop coal-to-gas projects in the coal-rich province.

Rival Sinopec is also developing two cross-country coal-to-gas pipelines from Xinjiang to China's eastern coast by 2015.

--Song Yen Ling, yenling.song@platts.com

--Edited by Meghan Gordon, meghan.gordon@platts.com

Platts Email




Copyright © 2017 S&P Global Platts, a division of S&P Global. All rights reserved.