China signs $50 billion U.S. dollars in oil projects this month

Chinese focus on energy efficiency

A Yuhuan coal-fired plant is 45% efficient.

A Beijing trigeneration natural gas plant is 58% efficient.

Ethnic Chinese in America are striving to achieve the goal of 66% efficiency for solar cells via harnessing "hot electrons" in quantum dots. The current "theoretical maximum efficiency of [solar] cells is around 31 percent." "However, if one could remove the hot electrons before they cool, says study author Xiaoyang Zhu, a chemistry professor at University of Texas at Austin, "then you essentially shut down this heat-loss pathway, and you increase efficiency by more than a factor of two."

"Now researchers have shown that it's possible to harvest that energy before it escapes, meaning that engineers could one day develop next-generation solar cells with efficiencies of up to 66 percent. The research, funded by the Department of Energy, is described in the June 18 edition of the journal Science."



"How Quantum Dots Could Double Solar Cell Efficiency
Researchers have demonstrated a way to use quantum dots to significantly reduce the amount of energy that solar cells lose to heat, paving the way for future cells that are twice as efficient as today's technology. Here's how they did it.

By Mike Orcutt
June 18, 2010 4:24 PM


New research shows next-gen solar cells could more than double the efficiency of conventional silicon cells, shown here. (Photo from Flickr)

When it comes to turning sunlight into electricity, today's technology leaves lots of room for improvement. The most efficient solar cells on the market, which are made of silicon, convert less than 20 percent of the light that hits them into electricity, and the theoretical maximum efficiency of these cells is around 31 percent.

One reason for this low efficiency is that much of the incoming light contains energy that is too high for solar cells to capture, so it's lost as heat. Now researchers have shown that it's possible to harvest that energy before it escapes, meaning that engineers could one day develop next-generation solar cells with efficiencies of up to 66 percent. The research, funded by the Department of Energy, is described in the June 18 edition of the journal Science.

When light hits a solar cell, a fraction of its energy is absorbed, exciting electrons in the cell's material and knocking them free. An electric field then forces the free electrons to flow in a specific direction, producing electric current. The energy that is absorbed is determined by what scientists call the bandgap—a limited range of energies the cell's material can capture.

But sunlight is composed of particles, called photons, representing a very broad range of energies. The energy from photons too high to be absorbed takes the form of high-energy electrons—or, as scientists call them, "hot electrons"–and is lost as heat. However, if one could remove the hot electrons before they cool, says study author Xiaoyang Zhu, a chemistry professor at University of Texas at Austin, "then you essentially shut down this heat-loss pathway, and you increase efficiency by more than a factor of two."

To accomplish this, the group used nanoscale (less than 100 nanometers, or 10-9 meters) crystals of a compound called lead selenide. Like silicon, lead selenide is a semiconductor, meaning it absorbs light energy within a certain bandgap, or range of energies. But semiconducting nanocrystals, also known as quantum dots, exhibit very different properties than their larger counterparts. For one thing, they can hold on to a hot electron for a longer period of time, stretching out the amount of time it takes for the electron to cool. In fact, previous research has shown that quantum dots can increase the lifetime of hot electrons by as much as 1000 times.

Once a hot electron is confined within a quantum dot, then comes the hard part: removing it so its energy can be harvested. The electron likes to stay inside the quantum dot, Zhu says, "so we needed to find something that would attract it out." For this role, the researchers chose titanium oxide, a well-studied compound known for its ability to accept new electrons. Then came the really hard part: arranging the lead selenide quantum dots and titanium dioxide in such a way that their chemical interactions would induce electron transfer.

Not only was the transfer successful, it was also very fast. If verified, this result makes highly efficient quantum dot solar cells more realistic, according to Tianquan Lian, a chemistry professor at Emory University who was not part of this study, and whose research revolves around the use of nanomaterials for solar energy conversion. This is the first demonstration that, in principle, the vital electron transfer step is possible, he says.

The ultimate goal, Zhu says, is called a "hot-carrier solar cell," which could convert up to 66 percent of incoming light into electricity. But many scientific and engineering steps remain before such a cell can be commercially developed. One challenge is to figure out how to transfer the hot electrons to a conducting wire. "This is science that has really striking implications, but implication is not application yet," Zhu says, adding, 'I'll be extremely happy if, in my lifetime, I see [hot-carrier cells] on roofs.'"

Ethnic Chinese wins U.S. "2010 Presidential Green Chemistry Challenge Award"

Ethnic Chinese wins prestigious "2010 Presidential Green Chemistry Challenge Award from the U.S."



"Taiwanese professor receives U.S. presidential chemistry award
2010/07/06 13:39:55


James C. Liao

Los Angeles, July 5 (CNA) Taiwan-native James C. Liao, a professor of chemical and biomolecular engineering at the University of California, Los Angeles (UCLA) , has been awarded a prestigious chemistry prize in the U.S. for synthesizing fuels from carbon dioxide.

The development, which won the 2010 Presidential Green Chemistry Challenge Award from the U.S. Environmental Protection Agency (EPA), has tremendous potential for cutting carbon emissions and saving fossil fuels, Liao said in an interview with the Central News Agency.

"The research is expected to enter mass production in five years at the soonest, " he said. "Once it enters mass production, it could replace 14 kinds of petroleum-based fuels and eliminate about 500 million tons of CO2 emissions."

Liao said scientists have only been able to indirectly convert CO2 into liquid fuels in the past, but his research has successfully developed a process that genetically modifies cyanobacterium to consume CO2 to produce the liquid fuel isobutanol.

Isobutanol is one of a number of higher alcohols considered to be superior to ethanol as fuels because of their higher energy density.

The technology is considered to have great promise, Liao said, because of the inexhaustible supply of CO2, unlike for oil or other alternative energy sources such as corn or rice straw.

"The problem now is how to effectively convert CO2 and find a more cost-efficient way to produce a variety of products," he said.

Liao graduated from National Taiwan University with a B.S. in chemical engineering in 1980, and got a Ph.D. from the University of Wisconsin in 1987. He joined the UCLA Henry Samueli School of Engineering and Applied Science in 1997.

The Presidential Green Chemistry Challenge Award, launched in 1995, promotes research on and the development of new technologies that help prevent pollution by reducing or eliminating hazardous waste in industrial production.

Liao, also affiliated with Easel Biotechnologies, LLC, which is commercializing the technology under exclusive licence from UCLA, is the first UCLA professor to receive the award in its 15-year history. (By Chiang Chin-yeh and Fanny Liu)"

China's Next Step: Smart Grid

Two of the major themes in this thread are advanced technology and energy efficiency. A smart grid satisfies both criteria.



Unlike a 300,000-ton oil supertanker, a smart grid is hard to see. Just like the nervous system for a human body, a smart grid enables a two-way communication between energy producers and consumers. By providing information about energy demand throughout the day, variable pricing for electricity, and harnessing important elements of the smart grid as energy production and storage devices, there is less stress (or wear and tear) placed on the electricity grid and improvements of 10% to 15% in energy efficiency can be achieved.

Think of it this way. The current electric grid is brainless. Consumers are charged one uniform price for electricity. This creates a problem for energy producers. There are spikes in energy demand as consumers turn on their dishwashers, clothes washers, or dryers during the evening hours. However, if you have a smart grid and the dishwasher's display panel tells you that electricity is a lot cheaper at 3 A.M. then you can program the dishwasher to wash the dishes at 3 A.M. The consumer saves money and the electric company does not have to activate expensive natural gas generators to handle the spikes in electricity demand. Everybody wins.



"State Grid Guns for China’s Smart Grid
June 30, 2010, 6:48 PM HKT

State Grid Co. of China has thrown down the gauntlet in a move that could pose a major challenge to foreign companies seeking a foothold in the multibillion-dollar upgrades of China’s electricity network.


Government-run State Grid is setting China’s smart-grid standards as it gets into the smart-grid business itself. (ZUMApress.com)

The state-owned company, which controls the transmission of electricity over 26 of China’s 31 provinces and regions and was ranked 15th on Fortune’s Global 500 list in 2009, on Tuesday announced a set of standards it wants adopted by the government over “smart-grid” upgrades to China’s power transmission and distribution networks.

State Grid, interestingly, is setting the standards as it gets into the business of making smart-grid technologies. Wang Yimin, head of its smart-grid department, told the state-run China Daily bluntly that the company hopes to use its role to help keep its dominance in grid building and equipment supply.

State Grid was created in 2002 when the government reformed the electricity sector, separating power generation from transmission and creating a new electricity regulator in the bet that competition among power producers would increase efficiency and lower costs.

But State Grid has been criticized for using its quasi-monopoly status to muscle back in. Though one magazine ran into trouble for taking on State Grid, even the more typically docile China Daily acknowledged critics’ worries.

“Some experts have expressed concern that the aggressive power supplier is trying to monopolize China’s smart grid market,” the paper said. “A public and transparent standard will help break the industry monopoly by encouraging competition.”

State Grid’s moves are especially worrying for foreign companies such as General Electric Co., Siemens AG and others who see smart grid as a potentially huge and lucrative market. China is expected to spend $60 billion to $100 billion in the next decade on smart grid upgrades. Where Chinese suppliers of conventional power equipment can sell cheaply, foreign players think they have an edge on cutting-edge technology.

But if State Grid has its way, that edge could be dulled.

– Shai Oster"

Sick of coal, China boosts its nuclear goals by 50 percent


A Nuclear Power Plant in China - (Photo: Russianspy.org)



"Sick of coal, China boosts its nuclear goals by 50 percent
March 24, 2010 | Tom Slater

China is scaling up its nuclear power plans in a big way. Its goal is to build 70 gigawatts worth of nuclear capacity by 2020 — 50 percent higher than its 2020 target was five years ago. It looks like uranium, still unpopular in the U.S. is finding big fans in Asia.

Achieving this goal will cost the country as much as $59 billion for 28 more reactors — 20 of which are already in the process of being built. As of this year, China is home for one-third of the world’s nuclear power construction. And the industry looks pretty healthy. Nuclear is thriving in its relatively lax regulatory environment. In the U.S., projects can be bound up in red tape for years before inevitably being abandoned. In China, plants can be built in just four years, like clockwork.

But the country isn’t the largest nuclear generator in the world, it’s simply the fastest growing. In fact, nuclear only provides about 2 percent of the energy used in the country, compared to 19.7 percent in the U.S., and more than 75 percent in France.

China still consumes more coal than any nation on earth — but it knows that has to change. That’s one of the reasons it’s pushing so hard to build reactors — to limit reliance on dirty power while also expanding the energy supply to meet skyrocketing demand. After the United Nations climate talks in Copenhagen went bust, China said it would ramp up efforts to cut emissions. Nuclear could help it make good on its word.

The difficulties associated with wind and solar energy in China have also made nuclear look more appealing. Without a well-developed electrical grid, much less a Smart Grid with adequate storage, fully harnessing distributed sources of energy is somewhat of a fool’s errand. The country is still investing in solar and wind — developing a market presence in the U.S. in both areas, as well (think SunTech) — but not as much as in nuclear.

China’s latest nuclear strategy will be detailed in full later this year. As it stands, the country is building more than twice as much new power as its closest competitor, Russia. In addition to delivering the power generated to its own people, China hopes to export it to its neighbors, including India, South Korea, and Russia — each of which are building more reactors than any other three countries outside of China. By selling nuclear energy abroad, Chinese companies will be competing directly with France’s Areva and General Electric.

Around the world, 370 gigawatts-worth of nuclear facilities are in operation. Another 200 gigawatts are currently under construction."

Huge solar-powered station starts operation


China's Suntech BIPV. Suntech Power Holdings Co. is the world's largest maker of polysilicon solar-power modules.



"Huge solar station starts operation
China Daily, July 19, 2010

The world's largest stand alone integrated photovoltaic (BIPV) project started transmitting power to the grid in Shanghai on Sunday in another move showcasing China's commitment to reduced carbon emissions.

The 6.68-megawatt solar system can produce 6.3 million kilowatt-hours (kwh) of electricity per year to meet the needs of 12,000 Shanghai households. It will cut coal consumption by 2,254 tons, while reducing carbon emissions by 6,600 tons.

The project has been installed on the awnings on both sides of the newly completed Hongqiao Station of the Beijing-Shanghai High-Speed Railway. Its 20,000 solar panels cover a roof area of 61,000 sq m and have produced 300,000 kwh power since the 160 million-yuan project began operation two weeks ago.

"The project is another manifestation of China's commitment to reducing carbon emissions to fight climate change. It comes after the country set a voluntary target of cutting carbon intensity per unit of GDP by 40 to 45 percent by 2020," said Yu Hailong, general manager of the Beijing-based China Energy Conservation and Environmental Protection Group (CECEP), the project's developer.

"As a pilot project, it will help stimulate the development of solar energy in China and promote the construction of more environmentally friendly railway stations," he said.

Chief engineer of the Ministry of Railway Zheng Jian said China will further encourage BIPV implementation at railway stations, which serve as an ideal vehicle to promote the technology.

A 2.2-MV BIPV system has also been installed at the Wuhan Station of the Wuhan-Guangzhou High-speed Railway. The system was connected to the national grid in May, CECEP deputy manager Chen Shuguang said.

"BIPV technology does not take up extra space, because it is integrated into buildings' design and construction. It is especially suitable for China's eastern areas, where there are limited land resources yet greater energy demand," Chen said.

The development of renewable energy has been topping the central government's agenda. It aims to have an installed capacity of 20 gigawatts of solar units and 100 gigawatts of wind power by 2020, official statistics show.

A number of world-class pilot projects have been completed this year in Shanghai, which is hosting the World Expo 2010.

They include the 4.6-MV solar energy generation system installed in the Expo Garden and China's first offshore wind farm, the 102-MV Donghai Bridge wind power project, which started transmitting electricity to the national grid in early July.

The government is also tendering for bids to develop 13 solar power projects with a combined capacity of 280 megawatts in the western regions, following last year's bidding for a 10-megawatt solar power plant in Gansu province's Dunhuang.

But Song Aizhen, of the solar energy branch of CECEP, said the government needs to come up with more detailed subsidy plans for renewable energies to encourage more active corporate investment.

"Take solar energy for instance - its cost is already three times that of thermal power, and BIPV technologies are even more expensive," she said.

'So government subsidies will be crucial to the technology's wider application.'"

Chinese, Turkmen, Kazakh, Uzbek presidents unveil gas pipeline


"Chinese President Hu Jintao, Turkmen President Gurbanguly Berdymukhamedov, Kazakh President Nursultan Nazarbayev and Uzbek President Islam Karimov turn on the flow of natural gas together at the gas plant on the right bank of the Amu Darya River, Turkmenistan, on Dec 14, 2009. The four leaders attended the inauguration ceremony of the China-Central Asia natural gas pipeline here on Dec 14. [Xinhua]"


"Workers at the opening ceremony of a gas pipeline in Samandepe, Turkmenistan"



"Chinese, Turkmen, Kazakh, Uzbek presidents unveil gas pipeline
2009-12-14

TURKMENABAD, Dec. 14 (Xinhua) -- Chinese President Hu Jintao and his counterparts from Turkmenistan, Kazakhstan and Uzbekistan Monday jointly put into operation a natural gas pipeline linking the four nations.

At the ceremony in a gas plant near the Turkmen-Uzbek border, President Hu said the China-Central Asia natural gas pipeline is a model of sincere solidarity and mutually beneficial cooperation of the four countries. He said the gas pipeline is a carrier of goodwill for friendship and mutual benefits of the four countries.

With their hands on wheel of valves, President Hu and Turkmen President Gurbanguly Berdymukhamedov, Kazakh President Nursultan Nazarbayev and Uzbek President Islam Karimov turned on the flow of natural gas together in the gas plant on the right bank of the AmuDarya River.

The 1,833-kilometer gas pipeline starts at the gas plant near this border town in Turkmenistan and runs through central Uzbekistan and southern Kazakhstan before entering China at the border pass of Horgos in the northwest region of Xinjiang.

One of the two parallel pipelines which make up the project has already come on stream and the other line is expected to be operational next year.

The pipeline connects with pipelines inside China that carry natural gas produced in Turkmenistan to major Chinese cities like Shanghai, Guangzhou and Hong Kong.

President Hu said at the inauguration ceremony that the China-Central Asia natural gas pipeline is a major cooperative project and of great significance to the four countries.

He said China is ready to continue to maintain close communication and step up coordination with Turkmenistan, Kazakhstan and Uzbekistan to build the second line of the project and secure safety and efficiency in the pipeline's operation. He said China is ready to advance energy collaboration among the four countries in an all-round way and to establish a long-term, stable, secured and reliable partnership of energy cooperation.

Hu said the plan and construction of the gas pipeline has won consistent attention and support of the presidents of the three Central Asian countries. The governments of these countries have done a great deal to lay a solid foundation for the smooth progress of pipeline construction. Hu said the pipeline is also a result of hard work by engineers from the four countries who have set a high standard of safety, efficiency and quality in construction.

Hu said the four countries have their own specific advantages in energy industry and share conformity in the policy goals of developing energy industry.

He said in recent years, the four countries have actively carried out energy cooperation and achieved fruitful results in line with the principle of mutual complementarity, mutual benefit, equality and win-win cooperation.

President Hu traveled some 80 kilometers by car from the Turkmenabat Airport to the border town. He and other leaders were given warm welcome by the local people.

At the ceremony, the leaders spoke highly of the pipeline, saying the China-Central Asia gas pipeline will bring benefits to the whole region.

Hu said at present the international situation is undergoing profound and complicated changes. He called for the four countries to strengthen cooperation and work to promote common development of all countries in the region.

He said the China-Central Asia gas pipeline provided yet another important platform for regional cooperation. He called for the countries to apply the experience and model of this project to other fields of cooperation among the four countries so as to enhance regional economic cooperation in an extensive way and lay a solid foundation for institutionalizing and scaling up regional cooperation.

Hu said China and Turkmenistan, Uzbekistan and Kazakhstan are good neighbors whose people share long-standing friendship. In recent years, the sustained, healthy and steady growth of relations among the four nations has brought about substantial benefits to economic growth, social stability and improvement of international status of the four countries.

Hu said China places great importance on developing friendly cooperation with Turkmenistan, Uzbekistan and Kazakhstan. He expressed the wish that the four nations be good neighbors, friends and partners forever.

Chinese officials said that the pipeline will serve the long-term interests of China and Central Asian nations, and will promote social and economic development of the countries in the region.

Turkmenistan's state media said that transporting gas supplies to China is important for the implementation of the country's strategy to diversify energy export routes to world markets.

Turkmen President Berdymukhamedov said in an earlier interview with Chinese media that the gas pipeline is an embodiment of true partnership based on equality, mutual complementarity and full recognition and utilization of cooperative potentials. He said the completion of the pipeline opened up a greater prospect of bilateral cooperation.

"The project has truly realized the balance of interests among energy exporters, transporters and consumers," he told reporters.

Deimdet Sh. Shayakhmetov, general director of Asia Gas Pipeline LLP of Kazakhstan, said in an interview that construction of the gas pipeline has created a large number of job opportunities and prompted growth of relevant industries in Kazakhstan.

He said after the gas pipeline went into operation, Kazakhstan would reap in a handsome income from transport fees. The sub-line of the pipeline will supply much needed natural gas to southern part of Kazakhstan, Shayakhmetov said.

Shayakhmetov said the gas pipeline has opened up a new outlet of energy export for both Turkmenistan and Uzbekistan and will bring about a great deal of income from transport fees to the latter.

"In fact, the most significant point of the China-Central Asia gas pipeline lies in that we and our neighbors find more common interests and cooperative opportunities," Shayakhmetov said.

Chinese officials said the pipeline will help improve the energy structure of China."

China to Import More Russian Coal, Lend $6 Billion



"China to Import More Russian Coal, Lend $6 Billion
By Bloomberg News - Sep 7, 2010 5:09 AM ET


China became a net coal importer for the first time in 2009 after overseas deliveries more than tripled to a record 125.8 million tons from a year earlier. Photographer: Qilai Shen/Bloomberg

China, the world’s biggest coal consumer, agreed to increase imports of the commodity from Russia by two-thirds in return for a $6 billion loan.

Russia will raise shipments to China to at least 15 million metric tons annually in the next five years and more than 20 million tons in the following 20 years, according to a Russian Energy Ministry statement. Deliveries surged 15-fold to 11.8 million tons last year, accounting for about 10 percent of China’s total imports.

Russia will use the loan to finance investments by domestic coal producers in return for a guarantee to increase supplies to China, Russian Energy Ministry spokeswoman Irina Yesipova said today by telephone. China, which uses coal to make steel and to fuel 80 percent of its power plants, is seeking to boost imports from countries including Mongolia and Australia to meet demand.

“It is strategically important for China to boost coal imports from neighboring counties including Russia to secure energy supply,” Wu Jie, a coal analyst at Orient Securities Ltd., said by telephone from Shanghai. “The purchase won’t have too big an impact on the domestic market and prices, given the moderate increase.”

Russia Vs. Australia

China became a net coal importer for the first time in 2009 after overseas deliveries more than tripled to a record 125.8 million tons from a year earlier. Its coal purchases from Russia cost an average of $87 a ton last year, compared with $111 a ton for cargoes from Australia, according to customs data. Russia was the fourth-largest supplier after Australia, Indonesia and Vietnam, the data show.

Russia and China signed the coal-supply and loan agreements at the end of August, according to the Russian statement. The $6 billion loan will help Russia fund new mining equipment, develop resources in the nation’s Far East and build coal-transportation links including railways, the China Coal Transportation and Distribution Association said today in a report on its website.

The countries will also set up joint ventures to develop coal resources in Russia and conduct research into coal-to- liquids technology, according to the Chinese report. Russia will cooperate on exploration with Shenhua Group Corp., China’s largest coal company, the association said, without elaborating.

Drive the Industry

“This agreement is beneficial for all coal producers in Russia,” said Alexander Pukhaev, an analyst at VTB Capital in Moscow. “It could act as a key factor driving forward the development of this sector.”

OAO Mechel, Russia’s biggest producer of coal for steelmaking, may benefit from the Chinese loan because it needs funds for its Elga mining project in eastern Siberia, Pukhaev said. Steelmakers OAO Severstal, Evraz Group SA and OAO Novolipetsk Steel might also be interested as they seek to develop coking-coal deposits in Siberia’s Tyva region, he said.

OAO Siberian Coal Energy Co., Russia’s largest coal producer, said last September that it increased exports to China 10-fold in the first nine months of 2009.

Electricity demand in China grew 22 percent in the first half from a year earlier as economic growth rebounded to 10.3 percent in the second quarter and 11.9 percent in the first.

--Winnie Zhu in Shanghai. With assistance from Henry Meyer in Moscow, and Wang Ying and Baizhen Chua in Beijing. Editors: Amanda Jordan, Alastair Reed

To contact the reporter on this story: Winnie Zhu in Shanghai at [email protected]"

China-Russia crude oil pipeline begins operations


Russian Prime Minister Vladimir Putin opens the Russian section of the Russia-China oil pipeline in the Amur region on Sunday.



"China-Russia crude oil pipeline begins operations
The Associated Press
Sunday, August 29, 2010; 11:40 PM

SHANGHAI -- Russia has opened its section of a crude oil pipeline from eastern Siberia to China, a major step in expanding energy cooperation between the neighboring powers.

The 1,000-kilometer (625-mile) pipeline will connect Russian oil fields with Daqing, a major oil production base in northeastern China.

"For China, this will help stabilize its energy supplies and security. For Russia, this offers a new market for exports to the Asia-Pacific region, especially dynamic and developing China," the state-run China National Petroleum Corp. quoted Russian Prime Minister Vladimir Putin as saying, in a statement issued Monday on its website.

Russia is the world's biggest energy producer and China is the world's largest energy consumer, overtaking the United States last year. Although Europe remains Russia's largest export market for gas and oil, both Beijing and Moscow have been seeking to diversify their energy sources and markets, despite a long history of mutual suspicion and tensions.

Speaking at the ceremony Sunday in the Russian city of Skovorodino marking the pipeline's opening, Putin said cooperation would not be limited to oil exports. Russia welcomes Chinese help in exploiting its abundant resources in the Far East and in expanding refining and marketing, he was quoted as saying.

The Chinese segment of the pipeline is still under construction but is expected to begin operations before the year's end, the statement said.

Eventually, the pipeline is to provide 30 million tons of oil a year to China, with exports to the Asia-Pacific region expanding to a total of 50 million tons a year, Putin was quoted as saying.

During a visit by Putin to Beijing late last year, Russia signed dozens of commercial pacts worth $3.5 billion and set the framework for a separate, multibillion-dollar agreement to build two natural gas pipelines to China from gas fields in Russia's Far East that would provide supplies almost matching China's current consumption."

Construction of Sino-Myanmar pipeline starts (Xinhua)



"Construction of Sino-Myanmar pipeline starts
(Xinhua)
Updated: 2010-09-10 21:37


A ceremony is held to mark the start of construction of the China section on the Sino-Myanmar oil and gas pipeline project in China's Yunnan province. [Photo/Xinhua]


The Sino-Myanmar oil and gas pipeline starts at Kyaukryu port on the west coast of Myanmar and enters China at Yunnan's border city of Ruili. [Photo/Xinhua]


The Sino-Myanmar pipeline is expected to begin operations by the end of 2010. [Photo/Xinhua]

KUNMING -- Construction began on the China section of the Sino-Myanmar oil and gas pipeline Friday morning in An'ning City in southwest China's Yunnan province.

CNPC, China's largest oil firm and parent company of PetroChina (PTR.NYSE; 00857.HK; 601857.SH), will build and operate the pipeline whose construction is due to finish in 2013.

The Sino-Myanmar oil and gas pipeline starts at Kyaukryu port on the west coast of Myanmar and enters China at Yunnan's border city of Ruili.

The 2,380-km long oil pipeline will end in Kunming City, capital of Yunnan. It is expected to carry 22 million tonnes of crude oil per annum to China from the Middle East and Africa.

The natural gas pipeline will be even longer, running from Kunming into Guizhou Province and the Guangxi Zhuang Autonomous Region in south China for a total length of 2,806 km. It is expected to transport 12 billion cubic meters of gas to China every year.

The project is the fourth way for oil and natural gas to enter China, after ocean shipping, the Sino-Kazakhstan pipelines and the Sino-Russian crude oil pipeline.

The oil pipeline saves 1,200 km of shipping. It will reduce China's reliance on the Straits of Malacca for oil imports, experts say.

Construction of the pipeline's Myanmar section began in June.

China has imported more than 20 million tonnes of crude oil through the Sino-Kazakhstan oil pipeline that was put into service in 2006, according to statistics from Xinjiang's import authorities.

The Sino-Russian pipeline is expected to begin operations by the end of 2010.

The new pipelines are in line with China's strategy of diversifying the methods and sources of its crude oil imports, said Qin Guangrong, governor of Yunnan.

"It will lessen risks and strengthen China's ability to cope with the complex and volatile international situation," he said.

The project will help quench south and west China's thirst for energy, Qin added.

Construction in An'ning of an oil refinery with an annual capacity of 10 million tonnes also started Friday."

Central Asia to send 17 bcm gas to China in 2011-Reuters


Chinese President Hu Jintao (2nd L, front), Turkmen President Gurbanguly Berdymukhamedov (3rd L, front), Kazakh President Nursultan Nazarbayev (1st L, front) and Uzbek President Islam Karimov (R, front) attend the inauguration ceremony of the China-Central Asia natural gas pipeline in the gas plant on the right bank of the Amu Darya River, Turkmenistan in this file photo from Dec. 14, 2009. [Xinhua]



"UPDATE 1-C.Asia to send 17 bcm gas to China in 2011-report
Fri Sep 17, 2010 2:41am GMT

BEIJING, Sept 17 (Reuters) - China and Central Asian countries have agreed to pump 17 billion cubic metres (bcm) of natural gas via pipelines in 2011, China National Petroleum Corp (CNPC) said in a company newspaper on Friday.

The volume is equivalent to 20 percent of China's total domestic gas output, Reuters calculation showed.

A coordination committee of the Central Asia gas pipeline between Turkmenistan, Uzbekistan, Kazakhstan and China had made specific plans in terms of monthly gas supplies to China and with regard to the maintenance schedule for the winter of 2010 and full-year 2011, the China Petroleum Daily reported.

The report did not provide monthly supply details.

CNPC, operator of the transborder pipeline that runs nearly 2,000 km through Central Asia before entering Chinese territory in the northwestern Xinjiang region, recently raised the capacity of the line to 24.5 million cubic metres per day or about 9 bcm per year.

The pipeline's capacity is scheduled to grow to 15 bcm by the end of this year and 30 bcm by the end of 2011.

As of mid-July, CNPC had received about 2 bcm of gas via the pipeline, which became operational late last year.

CNPC is the parent of PetroChina (0857.HK: Quote)(601857.SS: Quote)(PTR.N: Quote). (Reporting by Jim Bai and Tom Miles; Editing by Chris Lewis)"