The total investment scale of the West East Gas Pipeline Three Project may exceed 100 billion yuan


According to insiders,one of the important natural gas pipelines in China,the West East Gas Pipeline 3(hereinafter referred to as the"West East Gas Pipeline 3"),is expected to start construction this year.The entire project may cover ten provinces and cities in China,and its initial station will still be located in Xinjiang,just like the West East Gas Pipeline 1 and 2,with some pipelines running parallel to the West East Gas Pipeline 2.The total investment scale of the entire project is likely to exceed 100 billion yuan,and the gas source is still from Central Asia.

Two line and three line or parallel

Currently,100 million households and over 400 million urban residents in China have used natural gas.

At present,there are two natural gas pipelines in China,namely the West East Gas Pipeline First Line(hereinafter referred to as the"West First Line")and the West East Gas Pipeline Second Line(hereinafter referred to as the"West Second Line").The western front line is mainly supplied by the Tarim gas field in Xinjiang,with the Yangtze River Delta as the main target market.The pipeline route starts from Lunnan in Tarim,Xinjiang in the west and ends at Baihe Town in Shanghai in the east,with a total length of about 4000 kilometers.Its total gas transmission capacity has reached 17 billion cubic meters of its designed gas transmission capacity.

The West Second Line is the first strategic corridor project in China to introduce natural gas resources from overseas(Central Asia),with a total length of 4978 kilometers and eight branch trunk lines totaling 3726 kilometers.The entire trunk line was put into operation on June 30,2011.According to data obtained from PetroChina,the gas transmission volume of the West East Gas Pipeline 2 will be 17 billion cubic meters this year,and the gas transmission volume next year may reach 30 billion cubic meters.

It is understood that the gas source of the West Third Line still comes from Central Asia,and it will start from Xinjiang,just like the West First Line and West Second Line.Within Xinjiang,there may be 8 compressor stations on the West Third Line,which are parallel to the West Second Line.

Why are the two lines parallel

The reason why some routes of the West Third Line run parallel to the West Second Line is mainly due to the consideration of convenient management of natural gas pipelines by relevant parties such as PetroChina.

For example,at Khorgos Station of West East Gas Pipeline 2,there are dozens of employees responsible for the operation and patrol of the electrical and mechanical facilities of the pipeline.Once the West East Gas Pipeline 3 is completed,it can also be managed by the same group of employees.

The West Second Line passes through various landforms such as deserts,Gobi,hills,mountains,and swamps,and some pipelines are also located in life restricted areas with few human activities.The environment is complex,and construction is difficult.Moreover,in the current situation of limited land resources and difficult transportation and construction conditions in China,the design,construction,construction supervision,and later maintenance of natural gas pipelines will require significant human and material resources.Therefore,assuming that the West Third Line and West Second Line are parallel,the overall investment cost,safety risk,etc.will also be reduced.

According to China National Petroleum Corporation,some natural gas from the West Third Pipeline will be directly delivered to the natural gas pipelines of the West First and West Second Lines through the"connecting line".The designed annual transportation capacity of the West Third Line is approximately 30 billion cubic meters.

It is rumored that the West Third Line may be divided into the west section(from Khorgos in Xinjiang to Zhongwei in Ningxia)and the east section(from Zhongwei in Ningxia to Fujian Province),involving Xinjiang,Gansu,Ningxia,Shaanxi,Henan,Hubei,Hunan,Fujian and other provinces and cities,but the above statement has not been confirmed by PetroChina.A management team from China National Petroleum Corporation revealed that the trunk line of the West Third Line may cover a total of ten provinces,cities,or autonomous regions.

The production of the West Third Line may alleviate the natural gas demand in multiple provinces and cities in China.In 2010,China's natural gas consumption reached 110 billion cubic meters,and domestic natural gas production also reached 95 billion cubic meters.Experts predict that domestic natural gas consumption will continue to grow to 130 billion cubic meters this year,and"the supply gap may be around 20%to 30%,"said an insider from PetroChina.

The construction and operation of the West Third Line may also drive the speed of natural gas price reform in China.At present,China has two pipelines,the West Second Line and the West Third Line,which source gas from Central Asia.However,the management of China Petroleum Western Pipeline Company pointed out that there is a significant price difference between domestic and international natural gas prices.The current ex factory price of natural gas in China is about 1.18 yuan/cubic meter,and Xinjiang is a domestic gas source with lower prices.