Reuters reported that China Chuandongbei gas project in which US oil major Chevron Corp has a 49% stake and expects first gas production in 2010.

Chevron and leading Chinese oil company CNPC, parent of PetroChina entered a 30 year product sharing contract in December 2007 to develop the high sulphur gas field using technology from Chevron, which will be the operator of the field.

The Chuandongbei block in southwestern Sichuan province, has proven gas reserves of 176 billion cubic meter and companies said in 2007 that they planned to process the gas at two plants with total capacity of 740 million cubic feet per day or 7.6 billion cubic meters a year.

Mr Yan Cunzhang president of PetroChina foreign cooperation administration while speaking at a seminar on the sidelines of the US China energy forum said CNPC joint venture with French major Total ToTF.PA was on track to develop Sulige gas field in northern China.

He said that CNPC and Total would submit to the National Development & Reform Commission by end of October the overall development plan for Sulige South gas block in Inner Mongolia region that covers nearly 2,400 square kilometers.

The companies said the project is expected to reach a plateu production of 3 billion cubic meters from 2012 for 15 years.

(Sourced from Reuters)