PetroChina to Expand Gas Business

PetroChina Co Ltd. said it intended to further expand its domestic gas business, which was expected to benefit from a Russian pipeline deal in coming months.

Speaking at news conference, Jiang Jiemin, Chairman of the  company controlled by state-owned China National Petroleum Corp, said China and Russia had reached a consensus on most technical and commercial terms, but a few key questions remained.

The talks have focused on a western pipeline route that crosses the narrow stretch of the China-Russia border between Mongolia and Kazakhstan, but Jiang said PetroChina was hopeful of a breakthrough on an eastern pipeline, which would serve a more mature market.

The company would work closely with strategic partner Royal Dutch Shell Plc., to develop unconventional gas in China and intended to be a leader in coal-bad methane in China, both in terms of technology and output, he said.

PetroChina had CBM blocks in the Qingshui basin, Shanxi province, and a tight gas business in Ordos. It planned to speed up work on tight gas development in the Turpan and Hami basins in Xinjiang province, Jiang said.