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    CNPC Starts Building Gas Storage in Xinjiang

Summary

The facility will be online by 2025.

by: Shardul Sharma

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CNPC Starts Building Gas Storage in Xinjiang

State-run CNPC has started building an underground gas storage facility with a capacity of 5.6bn m3 in Shanshan County, Xinjiang, it said April 20 in a statement.

The facility will use the reservoirs of three depleted gas fields, Wenxi First, Qiudong and Wen 8, and will supply gas to Xinjiang and cities along the West-East gas pipeline.

CNPC will be investing close to yuan 7bn (US$1bn) in the project which is to be fully operational by 2025. The gas storage facility is a part of China's planned 20bn m3 natural gas centre in the northwest region.

Earlier this month, China’s National Development and Reform Commission (NDRC) released a document calling for the construction of gas storage facilities, gas pipelines and LNG infrastructure to be fast-tracked.

CNPC said it plans to build 23 gas storage facilities in the coming years. Since 2019, the company has successively started the pre-evaluation, pilot testing and engineering construction of eight gas storages, it said. At present, China has 27 gas storage facilities.