PetroChina to Invest $1.3 Billion in New Energy

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Researched by Industrial Info Resources (Sugar Land, Texas)--PetroChina Company Limited (PetroChina) (Beijing, China), the country's largest oil and gas producer, will invest $1.3 billion for the development of new energies by 2020, Hu Wenrui, Vice President of PetroChina, said recently at the first Science & Technology Innovation International Forum of China. The investment is expected to reap 3 million tons of oil in new energy resources.

A 3 billion-cubic-meter coal bed methane processing plant, the largest of its kind in China, is under construction and expected to go into operation in 2008, Hu said.

By 2020, utilization of terrestrial heat will account for 5% of the total energy consumption of the company’s upstream business, from 1.5 billion cubic meters of coal bed methane production capacity. The transportation of pipelines connected to the “west to east gas pipeline” will reach 300 million cubic meters. PetroChina will ensure the supply of ethanol fuel in nine provinces and carry out the preparation and modification of related national standards. Meanwhile, the company will build 400,000 hectares of biodiesel oil raw material base and complete the first 60,000-metric-ton biodiesel production base in Sichuan, Hu said.

"This will help guarantee the energy safety of the fastest growing economy and the world's largest energy consumer only second to the United States," he said.

The oil giant's business on new energy sources covers nonconventional energy including coal-bed methane, oil shale, oil sands and renewable energy, such as wind and solar power, bio and geothermal energy.

PetroChina's output of coal-bed methane, fuel ethanol and bio-diesel and that of shale oil and sand oil are expected to account for 40% and 20%, respectively, of the nation's total by 2010, Hu said.

He said the company will also take advantage of its resources, technology and funds to closely follow the latest developments in hydrogen energy and natural gas hydrate.

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