Xinjiang Gets Large CNPC Gas Field in Junggar Basin

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Researched by Industrial Info Resources (Sugar Land, Texas)--China National Petroleum Corporation (CNPC) (Beijing) announced that construction on its Mahe gas field was completed in early December in the Junggar (Dzungharian Basin in the northern Xinjiang Autonomous Region. The gas field is CNPC's third integral gas field in Xinjiang after the Hutubi and Penwu gas fields. The new gas field produces 1.5 million cubic meters per day of natural gas that is transported to Urumqi and Shihezi cities for winter heating.

The gas field is in suburbs of Shihezi City and was found with gas in 2006. A report from the Xinhua News Agency stated that the gas field is a medium-sized structural petroleum reservoir that is high-yield, highly enriched and of moderate depth. Sun Xiaogang, Vice President of Xinjiang Oil, said that after Phase I construction, which began in April, the company will expand the capacity to 2.9 million cubic meters per day in 2008. The total proven deposit is 30 billion cubic meters, which means the gas field can last 13 years.

Xinjiang Oil Company (Karamay City) is the biggest oil company in western China. It specializes in the survey, exploitation, sales and transportation of oil in the Junggar Basin. The Xinjiang oil field is China's first large oil field since 1949. Its production ranks fourth among continental oil fields in China. It produced 10 million tons of oil in 2002. CNPC's undated data show that the basin has 8.6 billion tons of oil and 2,100 billion cubic meters of natural gas; however, only 21.4% of oil and 3.64% have been proven, leaving great survey potential.

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