2010-07-15 09:47

KUERLE, Xinjiang: China National Petroleum Corp (CNPC) on Tuesday started work on two projects in Xinjiang Uygur autonomous region, in line with the central government's plan to boost development of the region.

The total investment planned for the two projects is 9.1 billion yuan and will help the energy-rich region better use its natural gas resources.

CNPC, the country's largest oil and gas producer, started work on a 2.9-billion-yuan fertilizer project in Korla city in Xinjiang on Tuesday. It will use the natural gas from the Tarim Basin to produce fertilizer.

The project will also help boost the agricultural and economic development of the region, Zhou Jiping, vice-president of CNPC, said at the inaugural function in Korla.

CNPC also began construction of a natural gas network in southern Xinjiang. The 2,500 km long project will cover Kashi, Hotan, and Kezilesu Kigiz.

With a total investment of 6.2 billion yuan, the project will have six main pipelines and six sub-pipelines. It is expected to go on stream in 2012.

After the project commences, nearly 88 percent of households in Kashi, Hotan, and Kezilesu Kirgiz will have access to natural gas.

Rich in oil and natural gas resources, Xinjiang in northwestern China will play an important role in CNPC's future strategy, a company official told China Daily on Tuesday.

At present the Tarim oil and gas field is the third largest production field under CNPC in terms of output. The field produced 5.54 million tons of crude and 18.1 billion cu m of natural gas last year.

The company plans to double the output of the field in 2020, by which time it expects to produce 40 million tons of oil and gas equivalent.

China's two West-East natural gas pipelines crisscross Xinjiang while transporting natural gas from western areas to eastern cities.

"Xinjiang will be an important region for domestic energy companies. There are sill huge opportunities in the region for exploration," said Han Xiaoping, chief information officer of domestic energy portal China5e.com.

In May, the central government unveiled an ambitious plan to boost development and maitain stability in Xinjiang,