PetroChina and Chevron begin production from long-delayed Luojiazhai gas field, onshore China

China National Petroleum’s subsidiary PetroChina and Chevron have commenced production from the long-delayed Luojiazhai gas field, onshore China.

The ‘A’ well of the Luojiazhai field has an estimated annual production capacity of three billion cubic metres of gas.

Luojiazhai is part of the $6.4bn Chuanbeidong project, a sour gas development in the Sichuan basin that contains a hydrogen sulphide content of 7.13-10.49%.

Chuandongbei also includes the Tieshanpo and Dukouhe-Qilibei gas fields. Design capacity at the proposed gas plants is expected to be 740 million ft³ of natural gas per day.

PetroChina and Chevron also plan to work on phase two and three of the Luojiazhai project.

While proposing the project, the companies had intended to produce two billion cubic metres of gas from the Chuandongbei project, by 2010. They planned to produce six billion cubic metres of gas by 2013 from the project.

Chevron operates the project with a 49% stake and the remaining 51% interest is held by PetroChina.

Following the signing of a 30-year contract with Chevron in December 2007, PetroChina initially expected delivery of first gas in 2010.

The 2,000km² Chuanbeidong gas area is believed to have proven reserves of 176 billion m³.

Earlier, the Luojiazhai field development was suspended due to an explosion at the No 16 well in 2003 that claimed the lives of more than 200 people, and after a gas leak that occurred in March 2006.