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West-East Gas Pipeline Project ( 2002-2013 ) Special Report on Social Responsibility

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West-East Gas Pipeline Project ( 2002-2013 ) Special Report on Social Responsibility Caring for Energy· Caring for You www.cnpc.com.cn West-East Gas Pipeline Project (2002-2013) Special Report on Social Responsibility China National Petroleum Corporation China National Petroleum Corporation Recycled/Recyclable Contents 16 Pipeline Construction and Operation 18 Safe and Environmentally Friendly Engineering 22 Securing Gas Supply 23 Ensuring Operational Safety 6 Overview of the West-East Gas Pipeline Project 2 Message from the Chairman 35 Appendix 35 Milestones 40 Terminology 34 Outlook Promoting Industrial 8 Improving Energy 26 Development Pattern 28 Boosting Industrial Upgrading 10 Guaranteeing Energy 31 Driving Local Development Security 33 Opening up and Cooperation 11 Optimizing Energy Mix for Common Development 4 West-East Gas Pipelines and 12 Improving the Natural Gas Utilization in China Environment 14 Enhancing Quality of Life 2 West-East Gas Pipeline Project (2002-2013) Special Report on Social Responsibility China National Petroleum Corporation 3 Message from the Chairman As we are confronted with pressing challenges stemming also put emphasis on the development and utilization of coal- development. During the construction of the pipelines, we from the growing contradiction between energy bed methane, shale gas and other unconventional gases, and strictly controlled project quality, minimized the impact on the demand and environmental protection, we are in need continue to secure safe and reliable gas supply with flexible environment and communities, and protected the ecological of the transformation to green energies now more than scheduling and peak shaving capacities. In China, we have built environment and cultural relics along the lines. ever. Natural gas, as a high-quality and high-efficiency four gas provinces in Xinjiang, Changqing, Sichuan and Qinghai. The 21st century is the golden age of natural gas. We are on a clean energy, is playing an increasingly important role. Our gas production in 2013 reached 88.8 billion cubic meters, journey toward the “Chinese Dream” through developing clean Since coal may remain dominant in China’s energy mix accounting for 75% of China’s total. With a nationwide gas energy. Upholding the mission of “Caring for Energy, Caring in the short term, large-scale development of natural gas pipeline network including the West-East Gas Pipelines, Shaan- for You”, we will strive to provide abundant energy to build a has become the most realistic way to achieve sustainable Jing Gas Pipelines, Zhongxian-Wuhan Pipeline and Sebei-Xining- “beautiful China”, and make new and greater contributions to the development. Since the start of the 21st century, backed Lanzhou Pipeline in place, we ensure steady gas delivery from the country’s socioeconomic development. by the national energy strategy, China’s gas industry producing areas to the target markets, meeting demand for clean has been going through rapid development. With energy across the country, promoting local economic growth, annual gas consumption rising at a more than double- and improving the environment and people’s quality of life. digit growth rate, and the percentage of gas in primary The West-East Gas Pipeline Project ushered in the era of natural energy consumption increasing from 2.5% in 2004 to gas in China. On July 4, 2002, construction of the First West- 5.9% in 2013, we’ve seen rapid progress in domestic East Gas Pipeline was kicked off. Over the decade, we have gas exploration & development and gas pipeline completed and put into operation the First & Second West- construction, as well as in imports and utilization of East Gas Pipelines, and the Central Asia-China Gas Pipeline. The natural gas from overseas. Third West-East Gas Pipeline under construction will be put into As the largest gas supplier in China, CNPC accelerates operation in 2016. By that time, a huge gas pipeline network the development of natural gas as a strategic, growth- dominated by the First, Second and Third West-East Gas Pipelines Zhou Jiping, Chairman oriented and value-added project. We introduce will take shape, with a total length of more than 20,000 meters, overseas resources while developing domestic gas and annual gas delivery capacity of 77 billion cubic meters. In fields in a scientific and efficient manner, and boost the the Third West-East Gas Pipeline project, we cooperated with construction of gas pipelines and relevant facilities. We public and private capital for mutual benefits and common 4 West-East Gas Pipeline Project (2002-2013) Special Report on Social Responsibility China National Petroleum Corporation 5 West-East Gas Pipelines and Natural Gas Utilization in China The West-East Gas Pipeline Project has opened up the era of commercial operation, with expanding gas consumption markets, As China’s gas demand, reserves and production are construction of the Third West-East Gas Pipeline. We have thereby natural gas in China, established a new development pattern and a growing proportion of natural gas in primary energy experiencing rapid growth, the construction of gas pipelines basically established a nationwide gas pipeline network, which for the nation’s gas industry, and promoted the strategic consumption. and facilities has advanced dramatically. We have completed also make foreign pipeline gases accessible, with the trunks and restructuring of the nation’s energy consumption mix. a number of long-distance natural gas pipelines, including the branches stretching a total length of over 45,000 kilometers. A From 2004 to 2013, China’s natural gas consumption rose from First and Second West-East Gas Pipelines, Shaanxi-Beijing Gas national gas supply guarantee system featuring diversified sources Historically, China was one of the first countries in the world 41.5 billion cubic meters to 167.6 billion cubic meters, with an Pipelines, Zhongxian-Wuhan Pipeline, Sebei-Xining-Lanzhou and flexible dispatch has taken shape, linking four domestic gas to develop and utilize natural gas. However, given its coal- average annual growth of over 15%. The proportion of natural Pipeline, and Myanmar-China Gas Pipeline, and started the provinces, including the Xinjiang, Qinghai, Shanxi-Gansu-Ningxia dominated energy mix, economic development level and remote gas in primary energy consumption rose from 2.5% to 5.9%, and Sichuan-Chongqing areas, and the cross-border Central Asia- distance between gas sources and markets, China had not up 3.4%. Domestic gas production rose from 40.8 billion cubic China Gas Pipeline and Myanmar-China Gas Pipeline, as well as developed and utilized natural gas on a large scale. Statistics meters to 118.3 billion cubic meters, with an average annual billion cubic meters marine LNG import channels. This system covers 29 provinces, show that from 1980 to 2000, the average annual growth rate of growth of 13.3%. Natural gas imports also increased greatly, 30.2 18% municipalities and autonomous regions and Hong Kong SAR gas consumption in China was only 2.8%, while the growth rate amounting to 53 billion cubic meters in 2013, among which Natural gas for in China. of primary energy consumption was 4.2%. pipeline gas imports were 28 billion cubic meters, and LNG power generation imports were about 25 billion cubic meters. Natural gas imports Distribution of At the core of the national gas pipeline networks, the West-East Gas Since the late 1990s, CNPC has made numerous breakthroughs reached 31.6%. China natural gas Pipelines play an irreplaceable role in guaranteeing the country’s in domestic gas exploration and development, achieving utilization in 2013 gas supply. The project has pioneered the construction of high- steady increases in both proven reserves and production. We With higher levels of urbanization and stricter environmental pressure, large-diameter and long-distance gas pipelines in China. discovered and developed a number of gas fields including requirements, China’s natural gas consumption mix has become 40% By giving full play to the complementary advantages in Eastern Kela-2, Dina-2, Sulige, and Longgang successively in the more diversified, shifting from chemical feedstock and fuel for China and Western China for collaborative development, the project Tarim, Qaidam, Ordos, and Sichuan basins. In particular, the oil & gas production to urban gas and fuel for power generation. billion cubic meters 68.7 has brought good economic, social and ecological benefits. Kela-2 giant uncompartmentalized gas field identified in the At present, urban gas takes the largest share in gas utilization. In Urban gas Tarim Basin in 1997 has directly driven the implementation 2013, China’s urban gas reached 68.7 billion cubic meters, and of the West-East Gas Pipeline Project, a landmark project for natural gas for power generation was 30.2 billion cubic meters, China’s Western Development. China’s gas industry started to accounting for 40% and 18% of country’s total gas consumption, develop rapidly as the First West-East Gas Pipeline was put into respectively. Gas production, gas imports and gas consumption from 2002 to 2013 (unit: billion cubic meters) 200 150 Gas production 100 Gas imports Gas consumption 50 0 2006 2007 2008 2009 2010 2011 2012 2013 6 West-East Gas Pipeline Project (2002-2013) Special Report on Social Responsibility China National Petroleum Corporation 7 Overview of the West-East Gas Road-map of the West-East Gas Pipelines Pipeline Project Originally know as the First West-East Gas Pipeline which became Shanghai and Hong Kong. This pipeline is capable of delivering operational in 2004, the West-East Gas Pipeline Project is now a 30 billion cubic meters annually for over 30 years. It passes natural gas supply system stretching from across China from east through 14 provinces (municipalities and autonomous regions) Horgos Urumqi to west, including the completed First and Second West-East Gas including Xinjiang, Gansu, Ningxia, Shaanxi, Henan, Hubei, Jiangxi, Third West-East Turpan Gas Pipeline Pipelines as well as the ongoing Third West-East Gas Pipeline.
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