China’s natural gas production has risen to ninth in the world

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China’s natural gas production rose to ninth in the world. According to China National Petroleum Corporation, in 2008, China’s oil and natural gas production continued to show double-digit growth, with an increase of 13.7%; this marked the sixth consecutive year that China’s oil and natural gas production had experienced double-digit growth. At the same time, oil and gas exploration in China is also progressing smoothly, with the proven geological reserves of natural gas exceeding 300 billion cubic meters for four consecutive years. China’s oil and gas industry has achieved a comprehensive balance in production, transportation, distribution, and storage, ensuring a secure and stable supply of gas to key cities, important users, and during critical periods. 　　Statistics also show that the growth rate of China’s natural gas production in recent years has been much higher than the global average annual growth rate of 4%, pushing China to ninth place in the world in terms of natural gas production. China is not only a major oil producer in the world but has also become a major natural gas producer. 　　According to officials from China National Petroleum Corporation, in 2008, China’s oil and gas production saw its output structure adjusted in a timely manner in response to market changes, with efforts accelerated to expand production capacity in key gas-producing areas. Among them, the natural gas production from the Tarim Oil Field reached 17.4 billion cubic meters, maintaining its position as China’s largest natural gas production area. The Changqing Oilfield saw a net increase in natural gas production of 3.37 billion cubic meters, making it the gas field within the group company that achieved the greatest increase in production. The natural gas production from the Southwest Oil and Gas Field is approaching 15 billion cubic meters, and the development of strategic gas areas is progressing steadily. The natural gas production in the Qinghai oil field increased by 28.3% on a year-on-year basis, making it one of the gas-producing areas with the highest growth rate. 　　In addition, construction has begun on the entire length of China National Petroleum Corporation’s Central Asia gas pipeline and the West-East Gas Pipeline Project Phase II. The construction of domestic oil and gas pipelines is advancing steadily; pipelines such as the Daqing-Qiqihar gas pipeline and the northern inner ring gas pipeline of the Southwest Oil and Gas Field have been completed and put into operation. The Yongtang-Qin gas pipeline project is progressing in an orderly manner, and the second line of the Sining-Lanzhou pipeline has begun construction. The first phase of the LNG projects in Dalian and Jiangsu has commenced construction. 　　CNPC also stated that this year it will continue to accelerate the development of strategic oil and gas transportation routes as well as domestic backbone pipeline networks, in order to ensure a safe, stable, and orderly supply of natural gas. To overcome the bottlenecks in pipeline transportation, they will accelerate the implementation and commissioning of a number of key oil and gas pipeline projects. The Central Asia Gas Pipeline single line and the western section of the West-East Gas Transmission Project Phase II were put into operation this year, enabling the reception of natural gas from abroad; the construction of the eastern section is being accelerated to pave the way for the completion of the entire pipeline by the end of 2011. Efforts are being accelerated to improve the domestic oil and gas transmission networks; the expansion project for the West-to-East Gas Pipeline Line 1, the pressure enhancement project for Line 2 of the Shaanxi-Beijing pipeline, and the duplicate line of the She-Ning-Lan pipeline will be completed and put into operation by the end of the year, while the Yong-Tang-Qin gas pipeline will be completed and operational by the end of May. Construction began on the Shaanxi-Beijing Line 3, Qinhuangdao-Shenyang gas pipelines, the Shandong gas pipeline network, and the Zhongwei-Lanzhou crude oil pipeline. Organize the construction of offshore engineering bases, ports, as well as LNG projects in Dalian and Jiangsu to ensure that the planned schedule is met. Continue to advance the preliminary work for the Tangshan and Shenzhen LNG projects. 　　In terms of natural gas sales, CNPC will enhance the comprehensive balance of resources as well as the coordination between production, transportation, sales, and storage. It will monitor market trends closely, optimize the operation of pipeline networks, and improve emergency response plans for gas supply, in order to ensure a safe, stable, and orderly supply of gas to urban residents, public utilities, and key industrial users.