Chuandongbei Gas Development Area--Sichuan

The Chuandongbei (Sichuan Province’s northeast) gas development area, covering about 2,000 square kilometers mainly in Xuanhan County of Dazhou City, and Wanyuan City, comprises three gas fields, Tieshanpo, Dukouhe and Luojiazhai, with proven natural gas reserve of 175.971 billion cubic meters.

Just over a year ago, few companies cared to bid for this project. In 2006, China decided to encourage foreign companies to participate in another project, exploitation of the Luojiazhai natural gas field in Sichuan and another 12 natural gas fields in the Tarim Basin in China’s northwest Xinjiang Province. But Luojiazhai is very near to a highly populated area and to exploit it safely, much of the population would have needed to be relocated, making costs prohibitive, and potential bidders changed their minds.

The Chuandongbei gas field in China's onshore Sichuan Basin is expected to start producing gas in 2010, according to Chinese officials. The project is operated by Chevron with a 49% interest, alongside China National Petroleum Corporation (CNPC) with the remaining 51%.