Gas pipeline to boost energy security

The successful launch of the first section of the second Sichuan-to-East Gas Transmission Pipeline marks a significant step in Beijing's ongoing efforts to bolster energy security and transition toward a cleaner energy mix, said industry experts.

The project is more than just a pipeline, it's more of a strategic artery that underscores Beijing's commitment to diversifying its energy sources and reducing reliance on coal, particularly in the industrialized east, they said.

While China is investing heavily in renewables, natural gas remains a vital transition fuel. The pipeline helps ensure a stable supply to power industries and heat homes, while also contributing to improved air quality in major cities, said Lin Boqiang, head of the China Institute for Studies in Energy Policy at Xiamen University.

"China needs to balance its reliance on imported gas with the development of its own reserves. Projects like this demonstrate the potential of domestic gas production to contribute to energy security," Lin said.

The pipeline will add nearly 3 billion cubic meters of natural gas transmission capacity annually, said its operator China Oil & Gas Pipeline Network Corp (PipeChina).

The move marks an acceleration in the construction of this strategic energy structure and promotes coordinated regional economic development, it said.

The pipeline's launch also signals a broad trend of infrastructure development aimed at connecting resource-rich regions in the west with high-demand centers in the east. This strategy is seen as crucial for promoting balanced economic growth and reducing regional disparities, said Lin.

It is a flagship project under the 14th Five-Year Plan (2021-25), highlighting the government's focus on infrastructure development to support long-term energy goals.

China is the global leader in gas pipeline construction, with thousands of kilometers of new pipelines built to enhance energy security, connect supply regions like Sichuan and Central Asia with demand centers, and support a clean energy system.

According to Lin, the increased gas supply is expected to provide a crucial buffer against potential supply disruptions and price volatility in the global energy market.

The project spans about 4,269 km, covering eight provincial-level regions, namely Sichuan, Chongqing, Hubei, Anhui, Jiangxi, Henan, Zhejiang and Fujian. Upon completion, the pipeline will have an annual transmission capacity of 20 billion cubic meters, enabling interconnection with the country's major trunk pipelines.

This will ensure the outward transmission of natural gas from the Sichuan Basin, address peak demand in central and eastern regions, and promote energy structure transformation along the route, said PipeChina.

The pipeline is being constructed in two phases — the western section (Sichuan-Chongqing-Hubei) and the eastern section (Hubei-Henan-Jiangxi-Anhui-Zhejiang-Fujian).

Li Wang, head of PipeChina Southwest Pipeline Co's Chongqing branch, said the connection of natural gas into the national gas grid creates a more efficient route for transporting natural gas from the Sichuan and Chongqing area, bolstering the region's ambition to become a 100 billion cubic meter natural gas production hub and improving access to natural gas for users along the pipeline's path.

China has been actively working to enhance its domestic natural gas production, including intensifying exploration and development of unconventional resources like shale gas.

China's shale gas production remained strong, exceeding 25 billion cubic meters, the National Energy Administration said. Natural gas production reached 246.4 billion cubic meters in 2024, with an average annual growth of over 13 billion cubic meters in the past six years, the administration said.

The Sichuan Basin is one of China's main natural gas production areas, with proven natural gas geological reserves of nearly 3 trillion cubic meters.

Companies like PipeChina have also been focusing on clearing bottlenecks in the interconnection of trunk pipelines in the southwest region in recent years, continuously improving the level of pipeline interconnection.