PetroChina officials have so far declined to comment, but the newspaper says the company will use the funds to link the main east-west pipeline with the second Shaanxi-Beijing pipeline that is currently under construction. That pipeline is expected to start supplying gas from the northwestern province of Shaanxi to the capital from next month.
The paper also says PetroChina is planning gas storage facilities in the eastern Jiangsu province, with six pumping stations at the western end of the pipeline. The 4200km expanded pipeline project should enable up to 12 billion cubic metres of gas a year to be supplied to the energy-hungry east two years ahead of the original schedule.
Earlier this month PetroChina, China’s largest oil company, said it was acquiring a large part of its parent's overseas assets for US$2.5 billion in a 50-50 joint venture.
The move by parent China National Petroleum Corporation - to shift the bulk of its foreign assets into its Hong Kong and New York-listed unit - was aimed at putting PetroChina in a better position to expand overseas as the bulk of its domestic assets were ageing onshore oil fields.
The assets to be owned by the new firm include the group's interests in oil and gas field ventures in China, Kazakhstan, Venezuela, Peru, Algeria, Oman, Azerbaijan, Canada, Ecuador, Niger and Chad.
