PetroChina Starts Work on First Shale Gas Pipeline in Sichuan

PetroChina Co. (857), the nation’s largest oil producer, began construction on the country’s first pipeline dedicated to transporting shale gas.

The pipeline will span 93 kilometers (58 miles) from Sichuan province’s Changning block and will have a daily transport volume of 4.5 million cubic meters, China National Petroleum Corp., PetroChina’s parent, said in a statement on its website today. It will link with an existing pipeline that carries gas to Yunnan province.

PetroChina didn’t provide information on when it will be completed or on production of the Changning block.

China has the world’s largest shale gas resources, estimated at 4,746 trillion cubic feet (134.4 trillion cubic meters), according to data from the Ministry of Land and Resources and the U.S. Energy Information Administration. Within China, Sichuan has the largest potential, according to a report last week by Sanford C. Bernstein & Co.

To contact the reporter on this story: Benjamin Haas in Hong Kong at bhaas7@bloomberg.net

To contact the editor responsible for this story: Jason Rogers at jrogers73@bloomberg.net

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