On January 8, CNPC signed a cooperation framework agreement in Beijing with Shenergy Group, and Yangkou Port Company Limited, on building the Rudong-Haimen-Chongming Gas Pipeline. Under the agreement, the three parties will establish a joint venture to invest, build and operate the pipeline.
The pipeline runs from Rudong County, Jiangsu Province, to Chongming Island in Shanghai, with a total length of 89.5km and designed annual deliverability of 2.4 billion cubic meters. It is expected to be completed and operational in 2014. The pipeline will further satisfy gas demand in Shanghai and Jiangsu by serving as the third major gas source of Shanghai after the first and second West-East Gas Pipelines, and also as a responsive channel for transmitting LNG from the receiving terminals at Rudong when needed.