Chinese natural gas producer bullish about new production plan

China National Petroleum Corporation (CNPC) Tarim Oilfields Co. Ltd. on Tuesday announced it will boost gas production and be in a position to supply fuel to 60 million Chinese homes by the year 2010.

Sun Longde, general manager of CNPC Tarim Oilfields Co. Ltd., said his company is aiming to become the world's first-class gas-producing base, producing 20 billion cu m of gas.

CNPC Tarim Oilfields Co. Ltd. is a key actor in the 4,000-km pipeline project designed to bring natural gas from western China -- primarily Xinjiang Uygur Autonomous Region and Shaanxi Province -- to 34 cities in the economically developed but energy-starved eastern areas of the country.

It has pumped 10 billion cu m of gas through the west-to-east gas pipeline since the beginning of the year and has gained an ability of supplying 35.6 million cu m of gas on daily basis.

On the basis that each household consumes one cu m of gas per day, Sun said his company is currently capable of providing fuel to 35 million Chinese homes or more than 100 million people.

As a strategic substitute area for energy, Xinjiang has grown into a main gas producing base in the country.

According to a national survey of oil and gas resources, Xinjiang is home to oil reserves of 20.86 billion tons, accounting for 30 percent of China's oil reserves on land. The remote region also keeps 10.3 trillion cu m of natural gas and 2.19 trillion tons of coal reserves, accounting for 34 percent and 40 percent of the national totals.

Tarim Basin, situated between Tianshan Range and Kunlun Mountains and with an area of 560,000 sq km, abounds in oil and natural gas resources.

The basin is now blessed with proven oil reserves of 526 million tons and 724.1 billion cu m of gas. Up to now, four major oil producing centers and three major gas gathering hubs have been built in the basin, according to Sun.

CNPC Tarim Oilfields Co. Ltd produced 5.7 billion cu m of gas in 2005, making up 14 percent of the national gas output and will turn out 11.4 billion cu m. this year, 98 percent of which will be supplied to the west-to-east pipeline, said Jiang Tongwen, president of Prospecting and Development Institute with CNPC Tarim Oilfields Co. Ltd.

"We will be able to offer stable gas supply for a span of 20 years given that the company will have retained the capability of producing 20 billion cu m of gas by 2010," said Sun.

Source: Xinhua