CNPC discovers natural gas field in northern China

16 December 2008

China's largest oil and gas producer, China National Petroleum Corp (CNPC), has found a natural gas field with a confirmed reserve of 100 billion cu m in northern Xinjiang Uygur autonomous region.

The discovery of the field, about 250 km away from Karamay city, will alleviate the gas shortage in northern Xinjiang, said Chen Xinfa, general manager of Xinjiang Oilfield Co, a subsidiary of CNPC.

Chen further added that the Klameli field is the first reserve of this size ever discovered around the Junggar Basin.

In 2008, the natural gas output in Xinjiang is expected to reach 24 billion cu m. The leading gas-producing region will pump more than 15 billion cu m of natural gas this year to the country's most affluent but energy-hungry eastern regions, the China Petroleum Daily reported.

Junggar Basin is said to have 2.5 trillion cu m of gas in reserve, but less than 10 per cent have been proved. Xinjiang Oil Co, working on the exploration of oil and gas reserves plans to increase Junggar Basin annual gas production to 5 billion cu m by 2010.

For three consecutive years CNPC's natural gas production has seen 20 per cent growth and earlier the company had said it had made six major oil and gas discoveries this year, as the company has put increasing focus on exploration.