Extension of Hainan pipeline to spur FTP

The 289-kilometer-long eastern part of the Hainan Island's loop natural gas pipeline was put into operation on Friday, and will further facilitate the rapid development of the Hainan Free Trade Port (FTP), said China Oil & Gas Pipeline Network Corp, the pipeline's operator.

Running from Hainan's Sanya to Wenchang, the eastern part of the loop natural gas pipeline is now connected with the pipeline's western part that passes Dongfang, Yangpu and Haikou. The western part was put into operation earlier, said the company, which is China's largest energy infrastructure owner and is also known as PipeChina.

The eastern part of the pipeline, which passes Wenchang, Qionghai, Wanning, Lingshui and Sanya, sees a designed annual natural gas transportation capacity of 1.5 billion cubic meters, equivalent of 18.12 million tons of standard coal that would have otherwise become necessary to use, potentially causing pollution.

The eastern part will not only meet the gas demand of the industrial customers in the island, but also play a key role in the region's environmental protection.

PipeChina said the 875-kilometer-long loop natural gas pipeline that covers 15 cities across the island currently has an annual gas transportation capacity of 4.1 billion cubic meters.

The western part has so far transported more than 17.7 billion cubic meters of natural gas to the island, equivalent of 23.01 million tons of standard coal, tantamount to reduction of 77.88 million tons of carbon dioxide, PipeChina said.

An analyst said she believes the annual gas transportation volume will keep increasing, and the pipeline will play a key role in ensuring the island's development of low-carbon manufacturing, green transportation as well as other new industries.

"The commissioning of Hainan circular pipeline grid can better secure gas supply for more downstream users," said Li Ziyue, an analyst with Bloomberg NEF.

"Higher penetration of gas in Hainan's energy mix is expected to help the province achieve its carbon emission reduction goals."

According to PipeChina, the natural gas consumption in the island is expected to exceed 10 billion cubic meters by 2025. To ensure sufficient gas supply, the company will continue stepping up natural gas infrastructure construction while coming up with a more open service platform to ensure the gas network covers more of the central regions in the island.