China discovers major natural gas field

Beijing: China has announced the discovery of proven oil reserves to over 500 billion cubic meters at Puguang. The Puguang gas field, which now covers 86 square kilometres, was discovered in 2003 in northeast Sichuan.

According to the state-run oil giant, Sinopec Corporation, "The gas field in South West China`s Sichuan basin is enormous and is expected to be producing 12-billion cubic meters of natural gas annually by 2008."

Prior to the Puguang gas discovery, China had four natural gas fields with deposits exceeding 200 billion cubic meters. According to reports, Puguang would make a massive contribution to the China`s thirst for natural gas.

"The discovery is not only good news for the Sichuan basin, it will also provide a model for exploration in other fold-thrust belts worldwide," Sinopec representative Guo Tonglou said.

Sinopec will invest 40 billion yuan ($5.06 billion) to explore and develop the Puguang gas field, which official reports say is worth hundreds of billion of yuan. The company will build a pipeline to supply natural gas from Puguang to Shanghai, the country`s financial hub in east China.

The gas field is expected to be in operation in May 2007.