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Project Insights

Sichuan to work with PetroChina on UGS facilities

Sichuan, which boasts abundant gas resources but scant storage capacity, has enticed PetroChina into helping develop underground storage in the province by offering to share the cost Sichuan, which boasts abundant gas resources but scant storage capacity, has enticed PetroChina into helping develop underground storage in the province by offering to share the cost.
By Tang Tian 31 January 2019 Asia Pacific / Pipelines, Storage & Power 0 33886
A gas storage facility in China. (Beijing Gas Group)

The key issue: The Chinese province of Sichuan wants to work with PetroChina and local companies to build underground gas storage sites. Six depleted reservoirs in southeastern Sichuan will be converted into depots with a combined working capacity of 5.7 bcm by 2035.

Interfax analysis: A novel partnership between PetroChina and the province of Sichuan could blaze a trail for local governments looking for a cost-effective way to boost storage capacity.

Sichuan’s gas consumption topped 20 billion cubic metres in 2017, but the province had an LNG...