China’s largest oil producer has started constructing the country’s first pipeline for shale gas transportation.
Reports claim state-owned PetroChina is building a 93 kilometre (58 mile) pipeline in Sichuan province’s Changning block, with a daily transport volume of 4.5 million cubic metres. It will link with an existing pipeline that carries gas to Yunnan province.
China is widely believed to hold the world’s largest shale gas resources, estimated at nearly five trillion cubic feet.
The news follows a recent increase in countries across the globe planning shale gas exploration after the US saw a decrease in gas prices from its shale gas boom.
Last week British Gas owner Centrica announced it has bought a 25% stake in the Lancashire field to explore shale gas in the UK.