PetroChina Begins Work on Gansu Part of West-East Pipeline

PetroChina has commenced construction of the West-East Pipeline's Gansu section. An inception ceremony was held in Jiayuguan City, Gansu Province last Friday. The construction of the West-East Pipeline began in July of 2002. The welding work for its 1485-kilometer main body from Jingbian, Shaanxi Province to Shanghai has been completed. The Jingbian-Shanghai section will be put into operation in the fourth quarter of 2003. With the success of the Jingbian-Shanghai section, the full construction of the Gansu section will now commence.

The Gansu section of the Pipeline starts from Anxi County, Gansu Province and ends at Jingtai County, Gansu. It stretches along Lanzhou-Xinjiang Railway to the Hexi Corridor, crossing 12 cities and counties including Liuyuan, Yumen, Jiayuguan, Jiuquan, Zhangye, and Wuwei. With a total length of 976 kilometers, it is the longest pipeline among all provinces. The construction will be divided into five sections and 12 construction units will carry out the construction. Six gas transportation working stations and a number of pressure stations will be built.

To ensure the construction progress to be on schedule, the Company has been making comprehensive planning and preparation in tendering, design, material procurement, transportation as well as technology since last year.

PetroChina has also taken measures to preserve the natural environment of Gansu in the construction process. For example, the Pipeline makes a detour 20 kilometers away from the buffer zone of the Anxi State Natural Protection Area in order to minimize the damage to wildlife.

Moreover, PetroChina conducted 8 investigations on the risk of geographical disasters along the Pipeline and designed protective device to ensure safe operation of the Pipeline in the long run.

PetroChina selected qualified and reputable construction companies through a strict bidding process. They will endeavor to complete the project as scheduled to ensure full operation of West-East Pipeline by January 1, 2005.

The governments at all levels in Gansu Province as well as people along the Pipeline are very supportive to the project. Provincial government has confirmed that the land to be used by the project will be under unified requisition. All the work is progressing smoothly.