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China: PetroChina raises gas output in Xinjiang's Tarim Basin by 8%

China: PetroChina raises gas output in Xinjiang's Tarim Basin by 8%

Write: Aina [2011-05-20]
p>PetroChina, China's largest oil and gas supplier, said early this week it has started production from two large gas fields in the Tarim Basin in the Xinjiang Uygur autonomous region, raising the basin's gas output by 8%.


Production from the Dabei block of the Kela gas field and the Tazhong NoGMT field will add 1.5 billion cubic meters of gas production a year, said an announcement Monday by local unit PetroChina Tarim Oilfield Company.


The Tarim Basin is China's largest oil and gas basin, covering 560,000 square kilometers. In 2009, gas production from the basin hit 18.1 Bcm, accounting for about a quarter of the country's total gas output for that year, Xinhua reported earlier this year. The basin's proven resources include 8 billion mt of oil and 10 trillion cubic meters of gas, according to PetroChina Tarim Oilfield Company's website.


Production from six gas wells in the Dabei block is about 1.5 million cubic meters a day, the local unit said in its release. Investment, excluding the cost of drilling the wells, was $45 million for the well heads, gas gathering station, pipelines and gas receiving equipment to deliver the Dabei
output to the Kela 2 gas processing station.


The Kela 2 processing station will process the gas from the Dabei and Kela 2 blocks and then feed it into China's West-to-East Gas project, which delivers gas for residential use to 14 provinces and regions of eastern and southeastern China, including Shanghai, Jiangxi, Zhejiang and Guangdong.


The Tazhong No.1 gas field, located in Bazhou Qiemo County, is expected to produce 3 million cubic meters of gas a day and produce 180,000 tons of condensate a year, PetroChina Tarim Oilfield Company said. Gas produced from this field also feeds into the West-East gas pipeline for use in eastern and southeastern China.


In a report on the Tarim Basin early this year, state news agency Xinhua said that output from the area is expected to rise to 50 million metric tons of oil equivalent in 2020, or more than 2.5 times its 2009 level. Gas output will rise to 50 Bcm a year, almost triple 2009's 18.1 Bcm total, it said.


China's gas demand is expected to hit 110 Bcm this year, the news agency said.


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