CNPC to Invest $4bn in Interconnect Projects

State-owned CNPC will invest yuan 25.8bn ($3.8bn) in 33 interconnect projects in 2018-2019 to ease gas transportation bottlenecks, it said August 16.

Some of the important projects that the company will be working on include connecting CNOOC’s Guangdong to the second West-East Pipeline and connecting Sinopec’s Guangxi LNG terminal to the China-Myanmar pipeline.

China’s gas pipeline grid is still not enough to cater to rising demand for gas. In absence of pipeline network in many areas, LNG trucking played a key role in supporting gas demand last winter season when government mandated coal-to-gas switching. China’s LNG trucking capacity is expected to double to 38mn mt/yr by 2025, said consultancy Wood Mackenzie in June this year.