Chinese firm sign $8 billion West-East pipeline gas deal

22 Oct, 2004

Asia's top oil and gas producer, PetroChina Co Ltd, has struck the biggest industrial gas deal for its $8 billion West-East pipeline, helping muffle criticism over insufficient demand for cleaner fuel in China.
State-run PetroChina said on Thursday it sealed the gas sales agreement with BASF-YPC Co Ltd - a 50-50 chemical plant venture between BASF AG and Sinopec Corp - to deliver 600 million cubic meters of gas annually.
No financial details were disclosed.
"Up to now, BASF-YPC Co Ltd is the biggest industrial user of the West-East project," PetroChina said in a statement.
BASF, the world's top chemical company by sales, expects to begin commercial operation at its plant in the eastern industrial city of Nanjing by mid-2005, churning out 1.7 million metric tonnes of chemicals and polymers annually.
Royal Dutch/Shell, Gazprom and Exxon Mobil Corp pulled out from the high-profile pipeline project in August.

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