West-East Gas Pipeline's Jingbian-Shanghai Section Commences Trial Operation

abarrelfullabarrelfull wrote on 21 May 2012 07:54

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1 October, 2003

PetroChina Company Limited ("PetroChina") today announced the commencement of gas transmission in the Jingbian-Shanghai section of the West-East Gas Pipeline. At 9:58 in the morning, Mr. Ma Fucai, president of CNPC and chairman of PetroChina, announced the beginning of the natural gas transmission from Changqing gas fields in northern Shaanxi into West-East Pipeline. This signifies the official commencement of the trial operation of the Jingbian- Shanghai part of the Pipeline and lays a solid foundation for the commercial supply of natural gas to Shanghai on 1 January 2004.

The eastern section of the West-East Pipeline is of 1485 kilometers in length, extending from Jingbian in Shaanxi to Shanghai. It passes through 6 provinces including Shaanxi, Shanxi, Henan, Anhui, Jiangsu, Zhejiang and Shanghai. The Pipeline passes through areas of complex topographic and geomorphic conditions. It surmounts Luliang Mountain, Taiyue Mountain, Taihang Mountain and Loess Terrace and crosses Yangtze River, Yellow River, Huai River and a network of rivers in South China.

In accordance with PetroChina's plan, the West-East Pipeline project started its trial construction in September 2001, and the construction of the whole Pipeline on 4 July 2002. By the end of 2003, the Jingbian-Shanghai section will be put into operation to supply commercial users in Shanghai with natural gas from northern Shaanxi. Energy-thirsty areas like Shanghai and Yangtze River Delta in East China can have gas from Tarim directly by early 2005.

As of July 2003, Changqing gas fields, the source of the natural gas supply for the eastern section of the Pipeline, have proven natural gas geological reserves of 1.1 trillion cubic meters, 751 billion cubic meters of recoverable reserves and 4.8 billion cubic meters of production capacity per year. These will fully satisfy the market demand for gas supply of the West-East Pipeline in the initial phase, in addition to meeting the demand of the Shaanxi-Beijing Pipeline and the peripheral markets.

Despite the SARS epidemic, flooding and heavy rainstorms in the eastern section of the Pipeline, the construction of the project achieved initial results through collective efforts of all the constructors. The Jingbian-Shanghai part of the project has been successfully built and all necessary testing and procedures have been completed. Construction of 29 stations, 61 valve rooms have basically been completed. For controlling projects, Yanshuiguan Yellow River Tunnel was completed on 10 June 2003, Yangtze River Tunnel was successfully established on 26 July, and the relevant work along Yellow River in Zhengzhou was completed on 15 September. At the same time, three sub-trunk lines from Changzhou to Changxing, Nanjing to Wuhu, and Dingyuan to Hefei have basically finished construction. Now with all preparatory work done, the Jingbian-Shanghai section is ready for gas transmission.

PetroChina has drawn experience from international practice in management and operation and adopted the all-round supervision and Sino-foreign co-supervision system in the West-East Pipeline project, resulting in high efficiency. Through a strict tendering system, around a hundred of Chinese and foreign contractors with track record and qualifications have been chosen to participate in the project.

PetroChina adopts the international common practice in delivering its role as the project owner. It highly emphasizes QHSE management in order to make the West-East Pipeline a high-quality, safe and environment-friendly pipeline. There was no major safety problems throughout the construction of the project, and its safety level is on par with the high global standard of similar projects elsewhere.

PetroChina highly emphasizes the importance of environmental preservation and it is its principle that the Pipeline construction should give way to protection of natural reserves, cultural relics and historic sites. It stresses the restoration of typography after construction to minimize the impact caused by the construction on wildlife and social environment. As the ecological condition in the western China is relatively weak, the implementation of the "Green Plan" would help create harmony between providing energy resources and protecting the nature.

To ensure smooth progression of the project, the State Leading Group for the Construction of West-East Pipeline Project had its sixth working meeting in Nanjing on 15 September. The meeting confirmed the initial success of the project, and 31 participating construction units and 69 excellent teams were given awards. Vice premier Zeng Peiyan, presented a flag to PetroChina's West-East Pipeline Company to applaud its good performance. The meeting also made arrangement for the protection of the Pipeline. PetroChina has made further progress in market development. It has initialed gas supply and use agreement with 19 users in Henan, Anhui, Jiangsu and Shanghai, including Shanghai Natural Gas Network Co. Ltd. and Yangtze-BASF Co. Ltd.

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