CNPC to make Xinjiang new base
- Source: Global Times
- [23:44 July 20 2010]
- Comments
By Li Woke
China National Petroleum Corp (CNPC) plans to develop Xinjiang as the country's top oil and gas production, processing and reserve base over the next decade, the company announced Tuesday.
"The Xinjiang Uyghur Autonomous Region is expected to become the country's most significant base in oil and gas production, refining and chemicals manufacturing, oil storage, and engineering and technology services in the next 10 years," said CNPC President Jiang Jiemin.
Northwest China's Xinjiang region is rich in oil and natural gas resources, boasting three of the country's major oil fields. Crude oil output in the area has reached 25 million tons, ranking third in China.
According to the company, annual capacity will rise to about 50 million tons of oil equivalent by 2015 and more than 60 million tons by 2020. The company will also speed up the construction of emergency oil stockpiles and pipelines in Xinjiang. Its oil storage capacity in the region is expected to reach 15 million cubic meters in 2015.
CNPC has invested over 300 billion yuan ($44.25 billion) in Xinjiang so far. It has 11 subsidiaries in the region, covering both upstream, middle stream and downstream business.
Total investment on the project CNPC announced Tuesday is estimated to reach around 3.7 billion yuan ($550 million).
CNPC also announced Tuesday that it has started work on two energy projects in Xinjiang, with total investment of around 9 billion yuan ($1.33 billion). The projects, one fertilizer plant and one natural gas pipeline network, will better use the natural gas resources in Xinjiang.
The central government accelerated oil exploration efforts when Xinjiang was named a target of China's western region development strategy in 2000. From 1990-2001, over 120 billion yuan ($17.58 billion) was spent on oil drilling.
Since early this year, Xinjiang has received a series of preferential policies and economic aid from the central government, which vows to boost the region's economic development and reach political stability, including cross provincial investment a 10 billion yuan ($1.46 billion) of economic aid.
CNPC will raise oil and gas development in Xinjiang and contribute to the region's stability, the firm's president said in May.
