The nation's dominant offshore oil operator has completed its first long-distance onshore pipeline to carry gas to south China's island province of Hainan, it was announced yesterday. The US$48 million trunkline snakes 247 kilometers to link the Dongfang 1-1 field with eight counties in western Hainan and Haikou, capital of the island province.

The project will cash in on the rich reserves in Dongfang, which is about 100 kilometers off the island. It also lays the foundation for the China National Offshore Oil Corp's (CNOOC) strategy to build a natural gas network along China's coastline.

The company said yesterday the pipeline is expected to deliver 800 million cubic meters of natural gas a year in the initial phase.

About 700 million cubic meters will be transported to a power plant and industrial users in an economic development zone in the island's Yangpu area. Another 1 million cubic meters will be supplied to Yangpu and neighboring Haikou for civil use.

CNOOC Gas and Power Co Ltd, a subsidiary of the offshore oil corporation, holds 70 per cent of ownership over the pipeline, while the Hainan Fuel Chemical Corp controls the remainder.

Construction of the gas link started in October and was completed two months ahead of schedule, the corporation said.

The Dongfang field has 99.7 billion cubic meters of proven gas reserves.

It also supplies the second phase of the Hainan Fudao Fertilizer Plant, which has an annual capacity of 800,000 tons of synthetic ammonia.

(China Daily August 13, 2003)