China accelerates oil, gas infrastructure with nearly 40 projects

China is accelerating construction of nearly 40 oil and natural gas infrastructure projects, including pipelines totaling over 9,000 kilometers, as the world's largest energy importer seeks to strengthen domestic supply security and expand its role as a regional LNG hub, state-owned pipeline operator PipeChina said May 6.

The construction program, which includes multiple trunk pipelines and gas storage facilities scheduled for completion through 2027, is expected to significantly enhance China's nationwide oil and gas transmission network and bolster its supply security, PipeChina said.

The infrastructure push comes as China enters its 15th Five-Year Plan period, which aims to bolster energy resilience amid rising oil and gas import dependence and volatile global markets, industry analysts said.

PipeChina said it reached a key milestone at its Hainan LNG Phase 2 project, where workers completed the dome-lifting operation for a 220,000-cubic-meter storage tank weighing 821 metric tons.

The facility, due for completion in 2027, will add 400 MMcm of gas storage capacity and support Hainan's ambitions to become an LNG supply center for Southeast Asia and a storage and transshipment hub for the Asia-Pacific region, PipeChina added.

Pipeline progress

Among the pipeline projects underway, the Sichuan-East Natural Gas Pipeline Phase 2, a priority project under the 15th Five-Year Plan, is progressing with simultaneous tunnel construction and line welding. PipeChina plans to complete 1,000 km of welding on this project this year.

The Hulin-Changchun natural gas pipeline in northeastern Jilin province is more than 90% complete and is expected to start operations by the end of 2026, interconnecting with the Ha-Shen and Changchun-Jilin lines, PipeChina said.

The Zhundong coal-to-gas pipeline, which will transport synthetic natural gas from China's largest coal gasification base in Xinjiang, has completed 118 km of welding. Once complete, the line will connect to the West-East Gas Pipeline system, adding domestic supply to offset import requirements, PipeChina added.

PipeChina is also advancing construction on three trunk pipelines that began this year -- the Jiangsu-Anhui-Henan line, the Wen23-Anqing natural gas pipeline and the Shandong network northern trunk line. The company said welding work on these projects is progressing, with some units completing initial operations.

The expanded pipeline and storage capacity will help alleviate regional supply mismatches in China, where imported LNG is concentrated along the coast while domestic and pipeline gas largely serve northern and western regions.

The added interconnections and storage will enable coastal buyers to access domestic pipeline gas at more competitive prices, potentially reducing reliance on spot LNG imports during peak demand periods, industry analysts said.