In the next 10 years, the China National Petroleum Corporation (CNPC) will build Xinjiang into China's largest oil and gas production base, according to Wang Yilin, deputy general manager of CNPC, China's largest state-owned integrated oil and gas producer.
The region will also serve as and oil and gas reserve base, an important petrochemical base, engineering services support base and an important channel for importing foreign oil and gas resources.
Wang said that CNPC will continue to increase investments and policy support in order to develop the oil and gas production of Xinjiang oil fields to 20 million tons per year, improve the amount of refined oil of Karamay Petrochemical Company to 10 million tons and maintain oil refining and ethylene production in the Dushanzi Petrochemical Company at levels of 10 million tons and 1 million tons, respectively.
The CNPC has accelerated the exploration and exploitation of oil and gas resources in Xinjiang since 2010 and in particular, a number of major projects were launched in July.
On July 14, the CNPC Tarim Large Chemical Fertilizer Project in Korla was completed and put into operation. It utilizes modern chemical fertilizer equipment with the largest land-based single-set production capacity in China and has investments totaling 3 billion yuan.
On July 19, the CNPC Urumqi Petrochemical Company xylene aromatics joint device was completed and tested. It is a 1-million-ton level xylene aromatics joint device, which has the largest single series in the world and investments in it total 3.7 billion yuan.
At the same time, the CNPC South Xinjiang Gasification Project, which officially began construction in Kashgar on July 14, has attracted much attention, and it is expected that in the next two or three years, the pipeline network will cover Kashgar, Hetian and Kizilsu Kirghiz Autonomous Prefecture, involving 25 county-level cities and 21 ranches.
The Xinjiang region has been occupying an important position in the strategy of the CNPC. In the past 30 years, the CNPC had invested over 300 billion yuan in Xinjiang, creating a production capacity of 18 million tons of crude oil, 23 billion cubic meters of natural gas, 12 million tons of ethylene and 20 million tons of crude oil refining capacity every year.
By the end of 2009, the proven oil deposit and natural gas reserves in Xinjiang stood at 3 billion tons and 1.3 trillion cubic meters, respectively.