Chevron’s 100%-owned subsidiary Unocal East China Sea has commenced natural gas production from the first stage of the long-delayed $6.4bn Chuandongbei project in southwest China.
Originally, the project was due to become operational in 2010, but was delayed as it is a complex field containing high hydrogen sulfide content.
The Chuandongbei project is a sour gas joint E&P project between China National Petroleum (CNPC) and Chevron and covers over 800km² in Sichuan province and the Chongqing Municipality.
The project comprises several gas fields including the Luojiazhai, Tieshanpo, and Dukouhe-Qilibei and is estimated to contain potentially recoverable natural gas resources of three trillion cubic feet.
Unocal East China Sea operates the project with a 49% participating interest and CNPC holds a 51% interest.
Chevron upstream executive vice-president Jay Johnson said: "First gas for the Chuandongbei Project represents a significant milestone and highlights Chevron’s leadership in the development of sour gas resources.
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By GlobalData"The project will be an important supplier of clean and affordable energy to the rapidly growing economy in southwest China."
The first train of stage one of the project became operational and production is expected to increase over coming months with all three trains becoming operational.
All the three trains have a design production capacity of 258 million ft³ of natural gas per day.
Chevron Asia Pacific Exploration and Production president Melody Meyer said: "First gas at Chuandongbei represents the next step in our energy partnership with China.
"The project has provided jobs and business opportunities for the local community, and will continue to contribute to the regional economy for decades."
Image: The Nanba gas processing plant at the Chuandongbei project. Photo: courtesy of Chevron Corporation.
