China brings two more shale pipelines on stream

China - Flag on Button of Black Keyboard
Source: DollarPhotoClub

A new 136.5 kilometre pipeline connecting the prolific Fuling shale gas block to the company’s Sichuan-East China pipeline network transporting gas to China’s eastern regions was completed by Sinopec on Monday. With a designed transmission capacity of 6 billion cu m/year and costing $290 million to complete, this is the first high-pressure shale gas pipeline with significant transmission capacity to be commissioned in the country. Production capacity is expected to reach 10 Bcm/year by 2017.

The Fuling field has so far been the only major success when it comes to shale in China, having produced 1.14 billion cubic metres in 2014, and expected to produce 40 bcm of gas by the year 2020.

Meanwhile, China National Petroleum Corporation on Tuesday unveiled a shale gas pipeline that transports gas out of its Wei 202 well in the Weiyuan shale gas block in Sichuan province, the company said on its website.

This is in addition to two pipelines that were commissioned in April and October last year.

All three pipelines will serve the Changning and Weiyuan shale blocks currently being jointly developed by the company.

China National Petroleum Corp. and its listed arm PetroChina Co. is the country’s biggest owner of pipelines, controlling about 77,000 kilometers (48,000 miles). China Petrochemical Corp. and its listed unit China Petroleum & Chemical Corp., or Sinopec, are the next largest with more than 30,000 kilometers.

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