The new CNY125bn ($19.7bn) pipeline measuring 7,378km will have a 5,000km long trunk line and eight branch lines to supply natural gas and replace 76.8m tons of coal, reduce carbon dioxide, sulfur dioxide and dust emissions.
China National Petroleum’s new pipeline is expected to supply 30 billion cubic meters (bcm) of gas every year of which 25bcm per year will be received from central Asian countries, where as the remaining gas will come from Xinjiang, according to the company.
Approved by the Chinese cabinet, the third pipeline will be constructed from the western part of the country and will travel across ten provinces and autonomous regions including Xinjiang, Gansu and Ningxia, to deliver gas to the eastern part, reports Xinhuanet.
China National Petroleum along with Baosteel and China’s Social Security Fund has formed a joint venture to finance the project, in which China National Petroleum holds 52% interest in the joint venture.
The project work is anticipated to be completed before the end of 2015.
China National Petroleum has already constructed the first pipeline which is delivering 138bcm of natural gas since 2004 from Xinjiang to Shanghai.
The second pipeline is expected to begin operations by the end of 2012 and transport 30bcm from Xinjiang to Guangdong; whereas the fourth and fifth pipeline project is under planning.
