By Li Hongmei
A major energy transmission network consisting of four natural-gas pipelines and one petroleum pipeline which connects China and three central-Asian nations, namely Turkmenistan, Uzbekistan, and Kazakhstan, are being launched successively, giving a shot in the arm for the economy of western China, particularly Xinjiang Uygur Autonomous Region.
At the forefront of the ambitious venture, state-run China National Petroleum Corporation (CNPC) is actively deploying a complete business chain for the "new energy silk road" by stepping up exploration and development, pipeline construction, oil refining, petroleum-gas marketing, and engineering technical services.
It plans to complete the construction of a central-Asia petroleum and gas cooperation pilot zone by the end of the period of the 12th five-year national development plan. Meanwhile Guanghui Energy of Xinjiang and some other local enterprises are also actively probing cooperative investment opportunities for petroleum and gas projects.
Of the four natural-gas pipelines, pipeline A and pipeline B, which are laid out in parallel and stretch 1,833 kilometers from the border between Turkmenistan and Uzbekistan to Xinjiang, started operating in 2009 and 2010, respectively. The two pipelines boast combined annual transportation capacity of 30 billion cubic meters, and link up with two west-east pipelines inside China reaching as far as the Yangtze Delta and the Pearl River Delta, and even to Hong Kong.
According to Chinese-language National Business Daily, a CNPC official noted that preparations for the kickoff of pipeline C have begun, and that the pipeline may become operational by year's end, thereby channeling natural gas from Uzbekistan and Kazakhstan into China. Planning for the construction of pipeline D has also started.
Statistics show that as of Nov. 15, 2013, pipelines A and B had already transported 70 billion cubic meters of natural gas to China.
Meanwhile, the crude-oil pipeline between Kazakhstan and China, extending 2,800 kilometers in length and boasting 20 million tonnes of annual transportation capacity, had channeled 50 million tonnes of crude oil to China as of the end of 2012, thereby making Kazakhstan China's eighth-largest crude-oil supplier.
The central-Asian energy supply network is critical for the energy safety of China, which relied on imports for 58% of its petroleum needs and 30% of its natural-gas needs in 2012. It is part of a strategy in China to diversify its energy import channels, adding to the channels already in place via its northeastern and southwestern borders, as well as by sea.
The new energy silk road will facilitate the execution of the Chinese government's grand development strategy for western China, particularly the economic development of Xinjiang, which will benefit from the stable and low-cost energy supply to develop the manufacturing, chemical engineering, light textile, and agricultural processing industries, according to petroleum experts.
