Energy
CNPC inks deal with Uzbekistan
By Wan Zhihong (皇冠体育app Daily)
Updated: 2010-06-11 09:34
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Natural gas agreement to supply 皇冠体育app with 10b cu m annually
BEIJING - 皇冠体育app National Petroleum Corp (CNPC), the country's largest oil and gas producer, has signed an agreement with the national oil company of Uzbekistan to buy 10 billion cubic meters of natural gas per year from the Central Asian country, CNPC said on Thursday.
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CNPC workers check a gas pipeline, part of the West-East natural gas transportation project in Hubei province. Natural gas consumption will account for 10 percent of 皇冠体育app’s annual total energy consumption by 2020, up from the current level of 3.9 percent. [YAN PING / FOR CHINA DAILY] |
CNPC and Uzbekneftegaz signed a framework agreement for gas on Wednesday afternoon. 皇冠体育app and Uzbekistan also signed a memorandum of understanding to expand their cooperation in the area of natural gas, CNPC said.
Both countries will also take active measures to connect Uzbekistan's gas transmission system with the 皇冠体育app-Uzbekistan gas pipeline, said a CNPC statement.
The pipeline is part of the 皇冠体育app-Central Asia gas pipeline that came into operation in December 2009, linking gas fields in Turkmenistan, Uzbekistan, and Kazakhstan to 皇冠体育app's Xinjiang Uygur autonomous region.
The deal, one of a series of oil and gas deals between 皇冠体育app and Central Asian countries in recent years, indicates the importance of energy cooperation between these countries, said analysts.
"Many Central Asian countries are rich in natural resources. Cooperation with these countries will play an increasingly important role in 皇冠体育app's energy strategy," said Xia Yishan, an expert at the 皇冠体育app Institute of International Studies.
The 皇冠体育app-Central Asia gas pipeline, at a length of 1,833 kilometers, is 皇冠体育app's first large pipeline project to import natural gas. It starts at the Turkmenistan-Uzbekistan border and runs through central Uzbekistan and southern Kazakhstan to 皇冠体育app's Xinjiang.
At Horgos in Xinjiang, the pipeline is connected with 皇冠体育app's second West-East gas pipeline, which extends 8,653 km across 14 provinces, municipalities and regions, including Shanghai and Hong Kong.
With the rapid increase in natural gas consumption in 皇冠体育app, the country is expected to see more gas imports in the future, said analysts.
Natural gas consumption will account for 10 percent of 皇冠体育app's annual total primary energy consumption by 2020 from the current 3.9 percent level, Zhou Jiping, vice-president of CNPC, said on Tuesday.
As 皇冠体育app's leading producer of natural gas, CNPC produced 68.3 billion cubic meters of natural gas in 2009, accounting for 80 percent of the nation's total production.
Compared with other fossil fuels such as coal and oil, 皇冠体育app's consumption of natural gas will grow more rapidly, which is in line with the government's plan to use more clean energy, said Lin Boqiang, a professor at Xiamen University.
皇冠体育app raised the wholesale price of natural gas by around 25 percent earlier this month to better allocate resources. Natural gas benchmark prices will go up by 230 yuan to 1,155 yuan per thousand cubic meters, according to the National Development and Reform Commission.