Chevron begins gas production from $6.4bn Chuandongbei project in China
Unocal East China Sea, a fully-owned subsidiary of Chevron, has started natural gas production from the first stage of the $6.4bn Chuandongbei project in southwest China.
Claimed to be one of the largest onshore gas projects in China, the Chuandongbei project covers over 800km2 in Sichuan Province and the Chongqing Municipality.
The firm produced the first gas from the purification plant of the Luojiazhai gas field, which is a part of the Chuandongbei project.
Luojiazhai field currently has a daily capacity of 9.8 million cubic meters and estimated to produce 3 billion cubic meters of gas per year. Chevron Upstream executive vice-president Jay Johnson said: "First gas for the Chuandongbei Project represents a significant milestone and highlights Chevron's leadership in the development of sour gas resources.
"The project will be an important supplier of clean and affordable energy to the rapidly growing economy in southwest China."
Chevron intends to ramp up the production over coming months significantly as all the three trains enter service. The three trains have a combined capacity of 258 million cubic feet of natural gas per day.
The Chuandongbei project, which comprises several gas fields including the Luojiazhai, Tieshanpo, and Dukouhe-Qilibei, is estimated to hold recoverable natural gas resources of 3 trillion cubic feet.
Chevron Asia Pacific Exploration and Production Company president Melody Meyer said: "First gas at Chuandongbei represents the next step in our energy partnership with China.
"The project has provided jobs and business opportunities for the local community, and will continue to contribute to the regional economy for decades."
Unocal East China Sea operates the project with 49% stake while China National Petroleum owns the remaining 51% interest.
Image: The Nanba gas processing plant at the Chuandongbei project in China. Photo: courtesy of Chevron Corporation.