CNPC and Sinopec Linked Pipelines to Optimize Natural Gas Supply

CNPC and Sinopec Linked Pipelines to Optimize Natural Gas Supply

September 14, the outbound valve of the Guangxi Qinzhou Gas Transmission Station was opened, and the Sinopec Guangxi Pipeline supplied the CNPC China-Myanmar Pipeline successfully. Up to September 30, Sinopec is predicted to provide CNPC with 55 million cbm in Qinzhou, Guangxi. This will optimize the natural gas supply and help the resource complementarity among the North China and the South China, which will ensure the upcoming winter heating.

The connection project between Sinopec Guangxi Pipeline and CNPC China-Myanmar Pipeline is a key project in the South-North Pipeline. The project plans to connect the two pipelines in Qinzhou and Laibin, and could provide 8 million cbm gas in both way everyday. Sinopec’s LNG resources can be provided in the winter heating in the North via this project.

The length of the main pipe in Sinopec Guangxi Pipeline is 727km and passes two province and seven cities. The temporary natural gas supply this time is a preparation to the upcoming winter supply through the South-North Project. In the heating season, CNPC will provide resources to Sinopec in North China through resource swap. Sinopec will put the pipeline between Yongning Gas Transmission Station and Liuzhou Gas Transmission Station into operation and finish the construction of the Laibin Connection so that the Guangxi Pipeline can supply by the end of September. In the future, the Sinopec North China Pipeline will be connected to Sichuan-Shanghai Line, CNPC’s Russia-China East Line and Shaanxi-Beijing Line.

CNPC now owns around 85% of China’s natural gas pipelines, such as West-East Line, Shaanxi-Beijing Line and China-Myanmar Line and the Russia-China Line which is still under construction. The main pipeline owned by Sinopec is the Sichuan-Shanghai Line. Most of the LNG terminals belong to CNOOC, which has a percentage over 50%. And Sinopec owns a big terminal in the North, the Qingdao Terminal with a capacity of 3 million mt/a.