MARKET POTENTIALcurrent State and Prospect of china'sCil and Gas Pipeline DeveloperPu Ming,, Ma Jianguo?(1. PetroChina Planning and Engineering Institute: 2. PetroChina Company Limited)By the end of 2010, China has completed 85,000 pipeline diameter 1219mm. The pipeline is made of X80kilometers of oil and gas pipelines in length, of which steelnatural gas pipelines were 45,000 kilometers, crude oil The backbone pipeline in the west(from Horgos topipelines were 22,000 kilometers, and products pipelines Zhongwei) and the branch line from Zhongwei to Jingbianwere 18,000 kilometers. An oil and gas network that began to supply gas commercially by the end of2009. Thecovers China and linked to the world has been developed; eastern part of the Second West-East Gas Pipeline wasa system integrating production, transportation and sales, completed and put into operation on December 5, 2010featuring in diversified resources, flexible allocation, and with the total length about 1435 kilometers. At the sameautomated management, is coming into beingtime, the Zaoyang -Shiyan branch line and the Huangpo tieline were put into operation. The whole branch line wasMajor pipelines constructed in 2010predicted to be completed and put into operation by theNatural gas pipelinesend of 2011(1) The Natural Gas Pipeline between Central Asia and (2)Phase I project of Sino-Kazakhstan Gas PipelineChina, and the Second West-East Gas PipelineSino-Kazakhstan Gas Pipeline is 1475 kilometers long,Line A and Line B of the Natural Gas Pipeline between with the design gas transmission capacity ranging from 10Central Asia and China were laid in parallel with the total to 15 billion cubic meters per year. The Pipeline will bedesign gas transmission capacity 30 billion cubic meters constructed by stages in accordance with the availabilityper year, the single line 1833 kilometers long, design of gas supply. At the first stage, the Bazhuoyi-Qimukentepressure 10 MPa, and the pipeline diameter 1067mmpipeline, 1, 164 kilometers long, and the Bazhuoyi inititalLine a was completed on December 15, 2009 the gas station were completed, with the gas transmission capacityheader of Line B reached Horgos metering station on reaching 6 billion cubic meters per year. At the secondAugust 23, 2010. Then the Natural Gas Pipeline between stage, the Yiniewu-Bazhuoyi pipeline, 311 kilometersCentral Asia and China was put into dual-pipeline long, and supporting compressor station were completed,operation officially.with the gas transmission capacity between 10 and 15The backbone pipeline of the Second West-East Gas billion cubic meters per yearPipeline started from Horgos, Xinjiang, and ended in On the onen Gas PipelineGuangzhou, with the total length about 5000 kilometers, could satisfy tl中國煤化工velopment anddesign gas transmission capacity 30 billion cubic meters people's livelCNMHGtanand someper year, design pressure between 10 and 12 MPa, and the natural gas will be exported to China through the Natural“方數(shù)據(jù)MARKET POTENTIALGas Pipeline between Central Asia and China. On the and the pipe diameter 1, 016mm. The Pipeline is anotherother hand, the Pipeline will export the natural gas important channel supplying natural gas to Beijing andfrom Aktobe Oilfield. After being completed, the Sino- Bohai Rim. It was started on May 15, 2009, of which theKazakhstan Gas Pipeline could be connected with the Yulin-Liangxiang part has been completed on Decemberbackbone gas line network in Kazakhstan and the major 31, 2010, and the Liangxiang- Xishatun part is predictedoil and gas provinces in the west, enhancing the strategic to be completed in June 2012. By then the whole Pipelineoil and gas cooperation between China and Kazakhstan a will be completed.lot(5)Dalian-Shenyang and Qinhuangdao-ShenyangPhase I project of Sino-Kazakhstan Gas Pipeline will Natural Gas Pipelibe put into operation by the end of 2012.The Dalian-Shenyang and Qinhuangdao-Shenyang(3)Sino-Burma Oil and Gas Pipeline.Natural Gas Pipelines are important component of theThe Sino-Burma Oil and Gas Pipeline will be a natural gas network of Northeast China, and also thenew land intake channel of oil and gas resources in backbone network of CNPC within Liaoning Province.southwestern China, promoting Chinas diversified Both the two pipelines will be connected with Liaoheenergy import and strengthening safe supply of the gas storage and form an annular gas line network incountry, facilitating the infrastructure construction in Liaoning Province, greatly enhancing safe gas supply inthe southwest, upgrading energy structure, boosting and Northeast China. Besides, the network of Northeast Chinapropelling local economic and social developmentwill be connected with that of North China through theWithin Burma's borders, the Sino-Burma Gas and Qinhuangdao-Shenyang Natural Gas Pipeline, which isOil Pipeline are 793 kilometers long and 771 kilometers of strategic importance to realizing diversified gas sourcelong separately. They enter into China's borders from and networking pipelines in Northeast ChinaRuili, Yunnan Province. The Crude Oil Pipeline reaches The gas source of Dalian-Shenyang Pipeline is from theChongqing via Guizhou, with the length of 1, 631 network in North China at early stage, and the major gaskilometers and design capacity being 22 million tons per source at later stage is the natural gas for export of Dalianyear. And the Natural Gas Pipeline reaches Guangxi via LNG Terminal. The backbone line of Dalian-ShenyangGuizhou, with the length of 1, 727 kilometers and design Pipeline begins from the Dalian Xingang LNG terminalgas transmission capacity being 12 billion cubic meters station, via Yingkou to the north, and ends at Shenyangtransmission substation Dalian and Fushun branch linesThe Sino-Burma Oil and Gas Pipeline goes through are constructed along the Dalian- Shenyang Pipeline, withthree provinces and one municipality within Chinas total length of 584.5 kilometers, design gas transmissionborders, passing through or crossing over 56 big- and- capacity of backbone line being 8. 4 billion cubic metersmiddle-sized rivers and 76 mountain tunnels. The Pipeline per year, design pressure 10 MPa, and the pipe diameteris one of the most difficult projects conducted in China, 711mm. The total investment of the project is 3. 34948because of the complicated geographic and geomorphic billion yuanas well as geological conditions, and frequent geologicThe Dalian- Yingkou part of Dalian-Shenyang Pipelinehazards occurring along itwas started on June 20, 2010: the Yingkou-Shenyang partThe Sino-Burma Oil and Gas Pipeline outside China was started on September 10, 2010 and planned to bewas started on June 3, 2010, and the Pipeline within completed and put into operation in June, 2011Chinas borders was started at Caopu Town, Anning CityThe Qinhuangdao-Shenyang Pipeline consists of oneYunnan Province on September 10, 2010. It is predicted to backbone line and three branch lines. The backbone linebe completed in 2013begins from Qinhuangdao substation, via Qinhuangdao,(4)The Third Shaanxi-Beijing Natural Gas Pipeline. Huludao, Jinzhou, Anshan, and Shenyang, and ends atThe Third Shaanxi-Beijing Natural Gas Pipeline begins Shenyang substation, with the length of 426 kilometers,from Yulin initial station in Shaanxi Province in the design gas transmission capacity of the backbone linewest and ends at Xishatun terminal station in Changping being 9 billion cubic meters per year, design pressure 10District, Beijing, via Shaanxi Province, Shanxi Province, MPa, and the pipe中國煤化工 three branchHebei Province, and Beijing, with the total length about lines are huludaoCNMH Gnch lines1, 000 kilometers, design gas transmission capacity being The Qinhuangdao-Shenyang Pipeline has been started15 billion cubic meters per year, design pressure 10 MPa, on May 28, 2009 and predicted to be completed and putCHINA OIL& GAS43No.2.2011中國煤化工CNMHGMARKET POTENTIALgas source in northeastern SichuanPetroChina's Changqing gas field, and theWest-East Gas Pipeline will be connectedin Shaanxi Province. and form a multi-source supply framework of the ProvinceThe project was started on November23, 2010 and planned to be completed in2011d. Xi'an-Shangluo Gas PipelineThe Pipeline has a length of 138.25kilometers, design gas transmissioncapacity 170 million cubic meters peryear, design pressure 4 MPa, and the pipediameter between 273 and 457 mm. Thewhole Pipeline has 3 stations and 7 valvechambers, with the investment of 255million yuanThe Project was started on April 192010 and planed to be completed in 2011. Yesanhe Suspension Bridge for the pipeline of Sichuan-East China gas transmission(10)Gas Supply project in GansuProvinceIn 2010, CNPC successively implemented gas supply consists of Linxia-Hezuo backbone line and Xiahe branchprojects in southwestern Gansu Province, southern line. The backbone line begins from Linxia City andGansu Province, Jiayuguan, Jiuquan, Zhangye, Jinchang ends at Hezuo City, and it is connected with the Linxiaand Wuwei Cities of the Province, which will play an station, with the total length of 118 kilometers, design gasmportant role in boosting economic development in the transmission capacity 100 million cubic meters per year,Province, upgrading local energy structure, improving design pressure 4 MPa, and pipe diameter 219.I mmatmospheric circulation, and protecting ecological The Xiahe branch line starts from the No I substationenvironmentof the backbone line and ends at Xiahe station with theThe gas supply project in southwestern Gansu Province total length of 3 1 kilometers, design pressure 4 MPa andmainly supplies gas to Linxia Hui Autonomous Prefecture, pipe diameter 114.3 mm. The total investment of the gasstarting from the terminal station of Liuhua branch line supply project in southern Gansu Province is 310 milliorof the Sebei-Xining-Lanzhou Pipeline and ending at yuan. It was started on December 25, 2010 and plannedthe Linxia terminal station, with the length about 63.6 be completed and put into operation by the end of 2011kilometers, design gas transmission capacity 112 million (I 1)Taian-Qingdao-Weihai Gas Pipelinecubic meters per year, design pressure 6.3 MPa, and pipeThe backbone line of the pipeline has a total lengthdiameter 219. 1 mm. The Project was started on February of 660 kilometers, total investment about 9 billion yuan26, 2010 and planned to be put into operation by the end design gas transmission capacity II billion cubic metersof September of the same yearper year, design pressure 10 MPa, and pipe diameterThere are totally five branch lines in Jiayuguan, 1016mm. Taian-Qingdao part was started on SeptemberJiuquan, Zhangye, Jinchang and Wuwei Cities, and they 28, 2009 and put into operation in June 2010; Qingdaoare all from the backbone line of the Second West-east Weihai part is predicted to be completed and put intoGas Pipeline, with the total length about 109 kilometers, operation in November 2011total design gas transmission capacity 1. I billion cubicmeters per year, design pressure 6.3 MPa and 12 MCrude oil pipelinesand pipe diameter 1683mm and 219. I mm. They were (I)Mohe-Daqirn中國煤化工nesstarted in May 2010 one after another and planned to beMohe-DaqingCNMHur strategIccompleted and put into operation in 2011and gas piplug.I anita from MoheThe gas supply project in southern Gansu Province Heilongjiang Province and ends at Daqing Oilfield, viaCHINA OIL GASNo.2,2011中國煤化工CNMHGMARKET POTENTIALThe Project was started on September 28, 2009 andThe initial station of the Pipeline is located in Beihacompleted and put into operation on October 20, 2010City, and the terminal station is located in Tianyang Sanleidepot of Baise Petroleum Branch. The Pipeline has a totalProducts pipelineslength of 465 kilometers, design oil transmission capacity()Nanjing-Quzhou Products Pipeline5.5 million tons per year, design pressure 9.5 MPa, pipehe Pipeline starts from Suanshan depot of Ningbo diameter 508mm, and total investment about 1.48 billionCity and ends at Longyou depot of Quzhou City, with the yuan. It was started on May 18, 2010, and planned to betotal length of 402 kilometers, design oil transmission completed and put into operation by the end of June 2011capacity 5.8 million tons per year, design pressure 8.5/9.5 (6) Phase I of the Pearl River Delta Products PipelineMPa, and the pipe diameter 508/457mm. Shaoxing, ProjectZhuji, Yiwu, Jinhuagufang, and Longyou offtake stationsThe Phase II Project is the extension and improvementare built up along the Pipeline; Shaoxing, Zhuji, Yiwu, of Phase I. The Pipeline starts from Huizhou Zehua depotJinhuagufang, and Longyou depots are newly built and ends at Meizhou Zhongcun depot, via Huizhouand expanded, with new capacity being 193, 000 cubic Shanwei, Jieyang, and Shantou, with the total length ofmeters. The Pipeline was started on January 28, 2010 and 498 kilometers, design oil transmission capacity 3.75planned to be completed by the end of 2011, with the total million tons per year, and the total investment 1.2 billionnvestment about 1. 82 billion yuanyuan(2)Changzhou-Chenzhou Products PipelineThe Project was started on November 30. 2009, andThe Pipeline starts from Changsha station, and is predicted to be completed and put into operation in 2011divided into two pipelines till Xiangtan station, one is to (7)Liuzhou-Guilin Products PipelineLoudi and the other is to Hunan, and Pingshi terminalThe Pipeline has a total length of 190 kilometersstation in Guangdong, with the total investment of 710 design oil transmission capacity 1.5 million tons per year,million yuan, total length 403 kilometers, and annual design pressure 10 MPa, pipe diameter 273Imm,andoil throughput rate 1. 8 million tons. The Pipeline could total investment 270 million yuan. After its completiontransmit four types of gasoline and diesel, and could solve the products supply of northern guangxi will be safethe problem of products transportation of Hunan Province,The Project was officially started on October 19, 2008connect the products resource of Changling Refinery and and was completed and put into operation on March 27Baling Petrochemical Company with that of southern, 2010western and central Hunan, and cover Heyang, LeiyangChenzhou, Loudi and other citiesCharacteristics of oil&gas pipeline constructionThe Project was started in August 2010 and planned to Natural gas pipeline construction has beenbe completed in December 2011highlighted()Guiyang- Tongzi Products PipelineRapid growth of natural gas demand in China hasThe Pipeline has a total length of 320 kilometers, pipe boosted the construction of natural gas pipelines a lot. Bydiameter355mm, design oil transmission capacity 3. 1 the end of 2010, China's natural gas pipelines were aboutmillion tons per year, and total investment of 960 million 45,000 kilometers long, 15,000 kilometers longer than theyuan. The initial station is in Guiyang Cityend of 2006, with the growth rate as high as 50%. In 2010The Project was started on October 18, 2010, and China's newly-built oil and gas pipelines were aboutplanned to be put into test operation by the end of 201110,000 kilometers, among which natural gas pipelines(4)Zhangshu-Shangrao Products Pipelinegrew by about 7, 000 kilometers and accounted for 70% ofa. The Pipeline is the Phase II project of Jiangxi Products the total. Construction of natural gas pipelines has beeneline, starting from the Zhangshu terminal station of highlightedJiujiang-Zhangzhou Products Pipeline, and ending atShangrao, with the total length of 742 kilometers, pipe The passage of oil and gas pipelines is taking shapediameter 406.4mm, design oil transmission capacity 6.5China's major natural gas production areas are locatedmillion tons per year, and design pressure 9.5MPa. Itin Tarim gas provi中國煤化工 Middle awas started in October 2010, and planned to be put into and West SiberiaCNMHGStan are alloperation in October 2012imported via Xinjiang. However, China,s major gas and(5)Beihai-Nanning-Baise Products Pipelineoil consumption areas concentrate in eastern and southernCHINA OIL& GAS|47MARKET POTENTIALChina. Therefore, it is inevitable to build long-distance northwestern and central China, by which multiplepipelines to connect the resource base and the market Due backbone pipelines have passed. The total lengthto such factors as terrain, city planning and environmental of natural gas pipelines within Gansu Province hasprotection zones, Hexi Corridor has become the only reached 850 kilometers(excluding nationwide backboneenergy routeway in West China. Now one crude oil pipelines)pipeline, one products pipeline and two natural gaspipelines have been built in Hexi Corridor. It is predicted Planning and construction of coal-gas projectsthat at least more than three natural gas pipelines will be witness a rapid growthbuilt there, and then China's largest corridor for oil and China has abundant coal resources, so coal-gas will begas pipelines will be formedpowerful complement for accomplishing diversificationof gas sources. In 2010, the Datang Intemational HexigtenLocal governments accelerate natural gas use and Banner Coal-Gas Project, the Datang International Fuxinestablish natural gas networks within provincesCoal-Gas Project, the Phase I of Qinghua Yining Coal-Jingbian-Xi'an Pipeline, Jingbian-Xi'an Double Gas Project, and the Phase I of Xinwen Yining Coal-Pipeline, Xianyang-Baoji Pipeline, Xi'an-Weinan Pipeline Gas Project were carried out in 2010, with the total gasand some other gas pipelines have been built in Shaanxi production of 15.5 billion cubic meters per year. TheProvince, with the total length of 1, 169 kilometers. All supporting multi-purpose station pipelines for the formerprefecture-level cities are available for pipeline gas except two projects have been constructed, and those of the latterHanzhong, Ankang and shangluotwo projects are under preliminary designHexi Corridor has become a major artery connecting化線冷們閑發(fā)A Deepened Strategic Cooperation fora Global Common RevelopmentE On June 20, 2011, members of the board of Directors and the Executive Committee of Royal Dutch Shell( Shell) paid a visit to theadquarters of CNPC. Holding an in-depth and amicable talk, the two sides signed the Global Strategic Cooperation Agreement betwveen ChinaNational Petroleum Corporation and the Overseas Investment Company of Royal Dutch Shdian oil sandsunconventional natural gas and oilfield engineering technology had also been reached. duri中國煤化of the Board ofDirectors and the Executive Committee of Shell visited Daqing Oilfield and they learned techniIron Man Spirit. Besides, they will visit Changbei Project which was jointly launched by theCNMHGing Spint an