China Natural Gas has said that the Henan Sanmenxia Development and Reform Commission has approved its wholly-owned subsidiary Lingbao Yuxi Gas to serve the second line of the West-East natural gas pipeline project's Sanmenxia branch line, which also enabled the company to receive an annual natural gas quota of up to 130 million cubic meters upon the completion of the pipeline.
In addition, the commission also approved Lingbao company to build one fueling station in East Chang’an road in Lingbao. The Sanmenxia Branch Line of the second line of the West-East natural gas pipeline project is included into the 2010 key construction project plans in Henan Province, the company said.
Qinan Ji, chairman and CEO of China Natural Gas, said: “The second line of West-East natural gas pipeline project commenced in early 2010 and is expected to complete the construction, inspection and test-run phases in 2011, with a maximum natural gas quota of 130 million cubic meters allocated to Lingbao company, serving residential clients in Lingbao and vicinity regions as well as industrial users in Sanmenxia industrial park.
“It has a powerful role in optimizing the energy structure of the Sanmenxia city and improving the environmental conditions. Lingbao company’s undertaking of the Sanmenxia Branch Line project enables CHNG to further develop its natural gas market in Henan Province and to open a new chapter for the company.”
China Natural Gas transports and sells natural gas to vehicular fueling terminals, as well as commercial, industrial and residential customers through its distribution networks in China’s Shaanxi and Henan Provinces. The company owns approximately 120km of high-pressure pipelines and operates 24 CNG fueling stations in Shaanxi Province and 12 CNG fueling stations in Henan Province.