PetroChina to Build Temporary Gas Pipe in 10 days After Blast

Reuters

BEIJING, Dec 21 (Reuters) - PetroChina plans to lay a temporary natural gas pipeline in the southern Chinese city of Shenzhen to replace a line that exploded near the site of a deadly mudslide, the company said Monday.

The new line will be laid over the next seven to 10 days after a 400-metre-long section of the pipe exploded, according to a statement on the PetroChina microblog.

The ruptured line is part of the massive PetroChina-operated west-to-east pipeline project that supplies Shenzhen with about 770 million cubic meters a year of natural gas and Hong Kong with about 400 million cubic metres a year, said consultancy SIA Energy. The west-to-east pipeline supplies about 3 billion cubic meters a year to Guangdong province, according to SIA and the Guangdong Oil & Gas Association.

Since Shenzhen and Hong Kong have access to other natural gas supplies either through liquefied natural gas or piped gas from offshore fields, analysts said the impact should be minimal for the two cities.

"The impact should be short-lived and not big, as Shenzhen has been heavily relying on CNOOC's Dapeng terminal for supplies," said an analyst with the Guangdong Oil & GasAssociation, referring to an LNG terminal located near Shenzhen.

At least 91 people were missing after the mudslide spewed out of an overfull dump site in Shenzhen buried 33 buildings in China's latest industrial disaster.

PetroChina wrote Monday on its microblog the pipeline blast had hit at least one industrial user, a Hong Kong power plant operated by Castle Peak Power Co Ltd, a company majority owned by a subsidiary of CLP Holdings. The unit has now switched to coal for power generation, PetroChina said.

(Reporting by Chen Aizhu; Editing by Christian Schmollinger)

Copyright 2016 Thomson Reuters. Click for Restrictions.

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