Yacheng-Hong Kong Gas Pipeline

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This project consists of the construction of a 778km, 36 inch pipeline from the Yacheng 13-1 oil platform to Hong Kong plus a 91km pipeline from the oil field to the Hainan Island. The project is jointly developed by China National Offshore Oil Corp. (51%), ARCO China Inc. (part of BP Plc. as of 2000) (24.2%) and Kuwait Foreign Petrolium Exploration Co. (13.7%). ARCO is the operator. The 778km pipeline is the second longest subsea pipeline in the world and will provide 280 million cubic feet of gas per day to the Castle Peak Power Company, a joint venture of China Light & Power Company and Exxon Energy Ltd as a result of a 20 year power purchase agreement. The 91km pipeline will deliver 53 million cubic feet of gas to local industries on the Hainan Island. The routing of the pipeline takes into consideration environmental as well as other factors like typhoons and mudslides which are quite common in the region. ARCO, later part of BP Plc., is the first foreign company to be awarded offshore oil exploration rights in China. The Yancheng 1-13 gas field was discovered in 1983, and the pipeline deal with Hong Kong was finalized in 1992. Construction ended in the fourth quarter of 1995, and the pipeline began delivering gas in January 1996. The gas pipeline whose total cost was $600 million is part of bigger project which consists in the development of the Yacheng 13-1 natural gas field. The whole project required an investment of $1.1 billion. None None