According to people familiar with the matter, one of the important natural gas pipelines in China, the third west to East Gas Pipeline (hereinafter referred to as "the third west line"), is expected to start construction this year. The whole project may cover ten provinces and cities in China. Its first station is still located in Xinjiang, just like the first and second lines of the west to East Gas Pipeline, and some pipelines are parallel to the second line of the west to East Gas Pipeline. The total investment scale of the whole project is likely to exceed 100 billion yuan, and the gas source is still Central Asia.
Two-wire and three-wire or parallel
At present, 0.1 billion households and more than 0.4 billion urban residents in China have used natural gas.
At present, my country has two natural gas pipelines: the first line of West-East Gas Transmission (hereinafter referred to as "West First Line") and the second line of West-East Gas Transmission (hereinafter referred to as "West Second Line"). The west line takes Xinjiang Tarim gas field as the main gas supply source and the Yangtze River Delta as the main target market. The pipeline line starts from the south of Tarim in Xinjiang in the west and ends at Baihe Town in Shanghai in the east, with a total length of about 4000 kilometers. The gas transmission capacity of the whole line has reached 17 billion cubic meters of its designed gas transmission capacity.
The West Second Line is my country's first strategic channel project to introduce overseas (Central Asia) natural gas resources, with a total length of 4978 kilometers and eight branch trunk lines with a total length of 3726 kilometers. The entire trunk line was put into operation on June 30, 2011. According to data obtained from PetroChina, the second west-to-east gas pipeline will deliver 17 billion cubic meters of gas this year and 30 billion cubic meters next year.
It is understood that the gas source of the West Third Line still comes from Central Asia, and it will be the same as the West First Line and the West Second Line, starting from Xinjiang. In Xinjiang, there may be 8 compressor stations on the West Third Line, which are parallel to the West Second Line.
Why are the two lines parallel?
The reason why part of the West Third Line is parallel to the West Second Line is mainly because PetroChina and other related parties have considered the convenience of the management of natural gas pipelines.
For example, at the Horgos Station on the West Second Line, dozens of employees are responsible for the operation and patrol of the electrical and mechanical facilities of its pipelines. Once the West Third Line is completed, it can also be managed by the same group of employees.
The West Second Line passes through a variety of landforms such as deserts, Gobi, hills, mountains and swamps. Some pipelines are also located in inaccessible life restricted areas. The environment is complex and the construction is very difficult. Moreover, under the current situation of tight domestic land resources and difficult transportation and construction conditions, huge manpower and material resources will be invested in the design, construction, construction supervision and later maintenance of natural gas pipelines. Therefore, assuming that the West Third Line and the West Second Line are parallel, the overall investment cost and security risk will also be reduced.
It was learned from PetroChina that part of the natural gas from the West Third Line will be directly sent to the natural gas pipelines of the West First Line and the West Second Line through the "connecting line. The designed annual capacity of the West Third Line is about 30 billion cubic meters.
It is rumored that the west third line may be divided into the western section (Xinjiang Horgos to Ningxia Zhongwei) and the eastern section (Ningxia Zhongwei to Fujian Province), involving Xinjiang, Gansu, Ningxia, Shaanxi, Henan, Hubei, Hunan, Fujian and other provinces and cities, but the above statement has not been confirmed by PetroChina. A management of CNPC revealed that the trunk line of the West Third Line may cover a total of ten provinces, cities or autonomous regions.
The commissioning of the West Third Line will likely ease the demand for natural gas in many provinces and cities in China. In 2010, China's natural gas consumption has reached 110 billion cubic meters, and the domestic natural gas production has also reached 95 billion cubic meters. Relevant experts predict that the domestic natural gas consumption will continue to grow to 130 billion cubic meters this year, "the supply gap may be about 20% to 30%." PetroChina an insider said.
The construction and operation of the west third line may also promote the speed of China's natural gas price reform. At present, my country already has two pipeline gas sources from Central Asia, and the management of PetroChina Western Pipeline Company pointed out that there is an obvious price difference between domestic and foreign natural gas prices. The current ex-factory price of natural gas in China is about 1.18 yuan/cubic meter. Xinjiang is the source of domestic gas, and the price is lower.
Central Asian natural gas is linked to products such as crude oil and is adjusted on a quarterly or semi-annual basis. Assuming that in the case of crude oil of 60 US dollars per barrel, the price of overseas natural gas to Horgos will be 2.15 yuan per cubic meter. If the pipeline transportation fee is added, it will be 1.7 yuan per cubic meter based on the current oil price. Since the West Second Line was put into production, PetroChina has imported 11.4 billion cubic meters of natural gas from Central Asia, with a loss of more than 10 billion yuan. If the West Third Line is opened, it will supplement the domestic natural gas supply and promote the price adjustment of domestic natural gas, but the loss of China's oil import of Central Asian natural gas will also increase.