China eyes more than 25,000 kilometers of new pipelines

China’s crude steel production target for 2007 continues to be revised upward. Currently, there are plans to produce 460 million tons, representing a steady growth in output of 10 percent over 2006 when the output totaled 418.78 million tons, which was a hefty 18.48 percent increase on 2005. One of the drivers for steel output through 2010 will be the production of oil and gas pipelines. China Petroleum Pipeline Bureau (CPPLB) reports that China plans to build more than 25,000 kilometers of oil and gas pipelines in the next three years. CPPLB undertakes the construction of more than 80 percent of the country’s oil and gas pipelines and more than 75 percent of China’s crude oil storage tanks.

The country’s oil and gas pipeline network totals 40,000 kilometers. There are a number of major cross country/transcontinental pipeline links under way and the domestic scene will see increased network building in main industrial centers and industrial parks. The distribution of energy resources to homes will follow the rise in numbers of middle class consumers.

The pace of economic development and the demand for steel from construction, machinery, automotive, shipbuilding, petrochemical, electric power, coal, transport and home electrical appliances sectors will continue to grow through 2010, reports the NDRC (National Development and Reform Commission). The report says that the steel industry is experiencing problems as the result of unduly fast expansion of production capacity and the continuous price hikes for raw materials, including iron ore, iron alloy and imported steel scraps.

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