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Pipeline construction faces problems

By Tu Lei (chinadaily.com.cn)
Updated: 2006-10-25 08:40

Although China is becoming a major natural gas buyer, there is doubt as to whether the natural gas supply to China will be problem-free, for there are potential problems in price, transmission volume and logistics.

China plans to transport natural gas from gas-rich countries, such as Russia, Kazakhstan and Turkmenistan, to energy-craving southern, eastern and coastal cities via transportation network, but analysts warn that the billions of dollars in investment will be hard to get back.

Recently, China approved a natural gas pipeline project that would run from Turkmenistan through Northwest China's Xinjiang Uygur Autonomous Region to South China's Guangzhou Province. The pipeline is expected to be finished by the end of 2009, and the annual consumption amount will reach 100 billion cubic meters by 2010, which may relieve the dependence on imported gasoline.

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The full text is available in the October Issue ofChina Energy.