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BEIJING, Aug 1 Asia Pulse East China will enjoy high quality natural gas at a price of 1.29 yuan (16 US cents) per cubic meter next year after the west-east gas transmission project goes into operation, according to experts from the State Development Planning Commission.
This is only a small part of the benefits brought about by the west-east natural gas transmission project, which started a month ago. The project is expected to give a big stimulus to the development of China's chemical industry.
1. High-quality low-price raw materials will be available for chemical enterprises in east China.
The chemical industry will consume 16 per cent of China's natural gas production or about 32.5 billion cubic meters by 2020.
After the operation of the gas transmission project toward the end of 2003, price of natural gas in Shanghai will go down sharply. The average price of natural gas recommended by authority will be 1.29 yuan per cubic meter, and 1.35 yuan per cubic meter in Shanghai. Production cost of tire rubber and chloro-alkali in east China will thus be cut by a big margin.
2. Structure of energy industry will improve greatly
Natural gas is regarded as a form of high-quality energy as ...
Source: HighBeam Research, CHINA'S WEST-EAST GAS PROJECT TO BOOST CHEMICAL INDUSTRY.