Sinopec to start Puguang - Shanghai gas project this month

China's largest oil refiner, Sinopec (NYSE:SNP) will start its Puguang-Shanghai gas project by the end of this month, reported by Shanghai Securities News.

The project, requiring a total investment of 63.2 billion yuan, includes exploration expenses on Puguang gas field and laying of natural gas pipelines with length of 1,702 kilometers, connecting Puguang gasfield and Shanghai, eastern China, via Sichuan province, Hubei Province, Jiangxi Province, Anhui Province, Jiansu Province and Zhejiang Province.

The pipelines are designed with 12 billion cubic meters/year transportation capacity.

Standing with CNPC's West-to-East gas project, it is an in-time supplement for soaring clean energy demand in Shanghai, officials said. Meanwhile, it will also take care of increasing gas demand in Yangtze River Delta Area.