China National Petroleum Corporation (CNPC) will construct China’s first shale gas pipeline, which will be capable of carrying more than 150 million cubic feet of natural gas a day, OilPrice.com reported.
The pipeline will stretch 57 miles from the Sichuan province to the Yunnan province, where it will connect with an existing pipeline.
The gas will come from wells in the Changning black and be transported to the Shuanghe gas processing station, Platts reported.
CNPC is a state-owned company and China’s largest producer and supplier of oil and gas. The company did not disclose when construction on the pipeline will be completed. Xinhua reported that analysts estimate China holds a large amount of recoverable shale gas resources but high costs and a lack of proper technologies could prevent the country from capitalizing on the reserves. Yet, natural gas has been viewed by some as a solution to China’s growing energy demand.