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CNPC, Chevron Launch Natural-Gas Production at China Plant
http://www.morningstar.com/news/dow-jones/TDJNDN_201601113971/cnpc-chevron-launch-naturalgas-production-at-china-plant.html
01/11/16 07:05 AM EST
By Brian Spegele

BEIJING--Chevron Corp. and China National Petroleum Corp. have launched commercial production at a long delayed natural-gas project in southwest China, the Chinese company said in a statement.

CNPC, the state-owned parent of publicly traded PetroChina Co. (601857.SH), said in a statement on its website Monday that the companies had begun production at well-A at the Luojiazhai gas field in China's southwest region of Chongqing on Dec. 30. Chevron didn't immediately respond to a request for comment.

The new production is part of a larger project known as Chuandongbei, and production at the Luojiazhai field--the first phase of development--will reach 3 billion cubic meters of gas a year, according to the statement.

The project, which has faced repeated delays and cost overruns since the companies signed a production-sharing contract in 2007, will require an investment of $6.4 billion, Chevron has said.

Chevron holds a 49% stake in the project and serves as operator, while CNPC holds the remainder.


Write to Brian Spegele at [e-mail]


(END) Dow Jones Newswires

January 11, 2016 07:05 ET (12:05 GMT)

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