PetroChina, Chevron Building Gas Production Facilities at Chuandongbei

SHANGHAI (Dow Jones Newswires), Feb. 24, 2011

PetroChina and Chevron officially started construction of production facilities at their joint Chuandongbei gas project in Sichuan province over the weekend, PetroChina parent China National Petroleum Corp. said Thursday.

Chuandongbei is China's largest onshore gas project in cooperation with a foreign partner, CNPC said in its inhouse newsletter.

Chevron has a 30-year production-sharing agreement with PetroChina to develop Chuandongbei at an estimated cost of $4.7 billion.

The project is expected to come online in the second half of this year with enough capacity to supply China's capital, a CNPC official said last year.

First-phase output at Chuandongbei is designed at 9 million cubic meters a day, he said.

Copyright (c) 2011 Dow Jones & Company, Inc.