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The article reports on the issue pertaining the changes of special petroleum proceeds. Chen Deming, deputy director of the National Development & Reform Commission addressed this issue in China. It has been mentioned that the special petroleum proceeds mean that the state imposes proceeds for petroleum producers according to a proper ratio under their extra sales revenues when the domestic crude oil price surpassing a limited standard.

The article explores the market condition of petroleum industry particularly various gas companies in China. Several oil companies enjoy a two-digit growth for the output of natural gas products. With this, the government has formulated the "Policy for the Natural Gas Utilization" on September 2007. The Chinese natural gas market is expected to hopefully achieve supply and demand balance.

The article reports that Inner Mongolia Boyuan United Chemical Co. Ltd (IMBUCC) has completed the 1 million tons per annum natural gas based methanol project in China. Accordingly, the methanol project is one of the major projects in the development program of the natural gas chemical industry in Inner Mongolia. However, the output value will reach around 3 billion Renminbi a year after the completion of the project.

The article presents a weekly report of the stock market in China from August 27-31, 2007. The indexes of Shanghai Stock and Shenzhen Stock was 18 and 0.04 percent respectively and the stock price of Yunnan Malong increased by 31 percent which was supported by the price increase of phosphorus ore worldwide. Hubei Xingfa had a price increase of its stock with a weekly increase of 18 percent and chemical fertilizer makers with natural gas as feedstock had increase in their price stocks.

The article reports that Air Products & Chemical Inc. has been awarded a new contract by Tangshan Guofeng Steel Co. Ltd. for the supply of industrial gases. This is the third Air Products long-term contract signed with Guofeng Steel since 2003 to supply gaseous oxygen, nitrogen and liquid argon to its steel mills in Hebei Sheng, China. A new air separation unit is to be built and is scheduled to come on-stream in late 2008.

The article announces the oil and petroleum production of PetroChina Co. Ltd. for the first half of 2007. The company has produced 419 million barrels of crude oil and 798 billion cubic meters of natural gas, an increase of 600 thousand barrels and 113.3 billion cubic meters a year. It also offers 1, 305 million tons of ethylene, 158 thousand tons of synthetic rubber and 1.997 million tons of synthetic resins.

The article reports on the global capacity of dicyclopen tadiene in China. This country has abundant dicyclopentadiene resources. In this connection, the output of coke in China was around 280 million tons in 2006, an increase of 20.5% over 2005. Meanwhile , China dicyclopentadiene is mainly used in unsaturated resin, ethylene-propylene rubber and petroleum resin sectors.

The article reports on the investment agreement of Linde Group with Xinbei municipal government of Changzhou, Jiangsu Sheng, China. Under the agreement, Linde Group will invest to construct a new industrial gas plant in Changzhou Xinbei Yangtze Riverside Development District. This new plant will start its operation at the end of 2008 and will provide reliable services to the enterprises located in the district.

The article reports on the statement of 30th, China National Petroleum Corp. that Western Crude Oil Pipeline will operate on June 30, 2007. The pipeline starts Urumqi in Xinjiang Uygur Autonomous Region to Lanzhou in Gansu province, that travels nearly 4,000 kilometers with 13 station yards along the line.

The article reports that the C9 petroleum resin unit in Tianjin Jinye Chemical Co. Ltd. started its operation in Dagang Petrochemical Industry Park, Tianjin, China. The wet commissioning was conducted in December 2006. The total investment of the unit is 22.0 million renminbi. Its output can reach 15,000 tons a year after completion.

The article reports that China National Petroleum Corp. (CNPC) regroups CNPC Daqing Petrochemical Works and PetroChina Daqing Petrochemical Co. Ltd. CNPC entrusts them to the management of PetroChina, effective July 1, 2007. CNPC Daqing Petrochemical Works is located in Daqing, Helongjiang Sheng, China. It is engaged in petrochemical downstream products. While, PetroChina Daqing Petrochemical Co. Ltd. is a leading petroleum and chemical integrated company.

The article reports on the increase in commercial retail price of civil natural gas in the city of Beijing, China. Beijing Municipal Commission of Development and Reform states that the future of price of natural gas will be defined on the basis of the natural gas upstream/downstream linkage mechanism. According to the author, the rapid growing demand and low price will aggravate supply shortage of natural gas and is unfavorable to the development of natural gas sector and energy conservation.

Information about the Chongqing Chemical Industrial Park (CCIP) Development Strategy Meeting held in Changshou, Chongqing, China on March 29-30, 2007 is presented. CCIP has scheduled to focus on petrochemical, natural gas chemical, chlor-alkali chemical, and new chemical materials making use of local natural gas, targeting to be the largest integrated chemical base at upward Yangtze River and state-class recycle economy demonstrative zone.

The article discusses the trend on the production and prices of the petroleum and chemical industry in China on the first two months of 2007. The total output of crude oil has increased by 2.5 percent and natural gas increased its output by 12.7 percent over the same period in 2006. On the other hand, the prices for inorganic materials showed different change rates according to the demand.

Information about several papers discussed at the Chinese People's Political Consultative Conference is presented. The topics in the discussion include the exploration and development of low-grade oil resources, the enforcement of legislation in the natural gas sector, and the establishment of international oil transaction platforms in the country. Several speakers attended the event including Huang Zhigong, Zhao Yufen, and Huang Baiqu.

The article reports on Sinopec Northwest Co.'s crude oil output in 2006 in China. As compared to the output in 2005, there has been an increase of 520,000 tons in crude oil output in 2006. The output of natural gas has also been increased to 871 cubic meter.

The article reports on an announcement by Sinopec Corp. regarding its crude oil and natural gas output in China. According to the company, its crude oil output is expected to reach above 40 million. There has been an increase of 1.37 billion tons in the crude oil proven reserves. Filling stations have increased upto 27,200.

The article reports that the first phase of Meishan Lantian Chemicals Co. Ltd.'s natural gas chemical project was completed on December 24, 2006 in Sichuan Sheng, China. The project, with a total investment of RMB121 million, has a capacity of 20,000 t/a dimethyl ether. The major products of the company include anhydrous sodium sulfate and alkaline proteinase.

The article reports on the formulation of policies for natural gas pricing and utilization by the National Development and Reform Commission in China. The commission plans to increase the gas price to be in line with the international market. The natural gas price in China is still lower than the price in the international market despite several adjustments made in 2005.

The article reports that Changqing Petrochemical Co. Ltd. of China National Petroleum Corp. constructed a hydrocracking unit in Xianyang, Shaanxi province of China. The company built a hydrocracking unit with a capacity of 1.2 million tons in a year to improve its product supply. The construction of facility is one of the refining expansion project in Changqing Petroleum.

The article discusses the impact of price decrease on the production capacity of the petroleum chemical industry in China. According to reports, the total output of crude oil in November 2006 increased 3% over the same period of 2005, and the output of natural gas rose by 15.1%. It was found out that the profit-earning ability of petrochemicals remained at a relatively high level.

The article reports on the successful startup of the 300,000 tonnes/annum methanol unit in Qinghai Oilfield Germu Refinery in China with a total investment of 600 million renminbi on September 25, 2006. It is another methanol unit in Germu Refinery after the completion of the 100,000 tonnes/annum methanol unit in 1999. The methanol unit totally funded by PetroChina, one of the major construction projects in Qinghai province that uses the new natural gas process.

The article reports on the readjusted fuel gas retail sale pricing principle planned to be implemented in China. Under the readjustment scheme, the price of natural gas for non-domestic use was increased by 0.15 renminbi per cubic meter. Furthermore, the price of energies has presented a rising trend.

The article reports on the readjustment of rebate rates of commodities which started on September 15, 2006 in China. The readjustment of rebate rates has been agreed by the Ministry of Finance, the Ministry of Commerce, the National Development and Reform Commission, the General Administration of Customs and the State Administration of Tax. The changes of prices have included products such as coal and natural gas and the export rebate rates of partial commodities.

The article reports on the growth in major operations of PetroChina Co. Ltd. The company's crude oil production increased. There was also fast growth in the natural gas sector. The number of service stations of the company represented an increase of 4.28 percent. Progress was also made in the company's major oil and gas pipeline projects in the first half of 2006.

The article reports on the agreement of China National Petroleum Corp. (CNPC) to transfer the 33% equity at PetroKazakhstan Inc. to a Kazakhstan state oil company. CNPC representative stated that CNPC subordinate had signed the transfer of agreement with KazMunaiGaz on July 5, 2006. The two companies were negotiating to develop the PetroKazakhstan Inc. to produce 10 million tons of oil by 2006.

The article reports that the company CNPC will make an investment of RMB16 billion in few years to construct 3 natural gas purification plants in Dazhou. Natural gas exploration and development conducted by CNPC Sichuan Northeast Gas Mining already covers 7 counties. The 3 natural gas purification plants to be constructed include a plant to be completed by the end of 2006.

The article reports that CNOOC Ltd. has announced on June 16, 2006 that Phase I of the Southwest Sumatra Gas Project has been successfully started. The contractual gas delivery rate is 55 million cubic feet per day from four wells. This project is situated about 120 kilometers offshore West Java in Indonesia, with an average water depth of 30 meters.

The article reports that XinAo Group's subsidiary XinAo Energy Sales Co. Ltd. was established on April 27, 2006 with the approval of the Ministry of Commerce of China. This has made XinAo Group the fourth corporation in China to have natural gas import and export rights. XinAo is mainly dependent on state-owned oil companies for its gas supply.

The article provides updates on the importation of liquefied natural gas (LNG) for China. According to reports the first ship of imported LNG from Australia has reached the LNG receiving terminal in Guangdong Sheng on May 26, 2006. The ship loaded 60,000 tons of LNG and the project is operated by Guangdong Dapeng LNG Co., Ltd., which is composed of eleven domestic and foreign companies.

The article reports on the leakage of natural gas from a well of PetroChina in Gaoqiao Town of Kaixian in Chongqing in China on March 25, 2006. The natural gas that leaked was ignited by rescue men. People were evacuated to nearby towns to prevent poisoning. The Luojia No. 2 well in Xiaoyang Village is the same well site involved in the large well blowout in 2003.

The article reports on the launching of the Guangzhou section of the Guangdong liquid natural gas transmission pipeline project. The project's completion is scheduled to be accomplished before April 2006. The project is a major initiative with relation to the readjustment and optimization of the energy distribution and the improvement of the environment quality in Guangzhou, China. It will allow residents in the area to avail of clean, high-effect and environment friendly high-quality energy.

The article reports on the recorded net profit of PetroChina Co. Ltd. for the year ended December 31, 2005, which represented an increase of 28.4 percent from the previous year. The company's domestic and overseas oil and gas output reached an accumulated 1.01 billion barrels of oil equivalent in 2005. In the same year, PetroChina attained a 59.8 percent increase in its exploration and production segment. The natural gas and pipeline business reported a 25.6 percent increase.

The article reports that the Hainan Provincial Government and the China National Chemical Corp. have signed a strategic cooperation agreement through their corresponding representatives Liuqi, the vice nomarch of Hainan province and Ren Jianxin, general president of ChemChina. The agreement would involve a joint effort on projects involving petroleum, natural gas, salt chemical, rubber chemicals and new types of chemical materials.

The article reports that PetroChina Co. Ltd. of China has reached a preliminary agreement with Russia regarding the construction of the first natural gas pipeline in history involving the two countries. The agreement is expected to be reached upon the state visit of Russian President Vladimir Putin in China on March 21-22, 2006. Hu Wenrui, vice president of PetroChina, said that the natural gas pipeline will start from Russia and pass through the Xinjian Uygur Autonomous Region in China.

The article reports on PetroChina Co. Ltd.'s signing of a natural gas development and production contract with Total of France. The partners will promote the replacement of continental energy resources by cleaner fuels in the urban eastern regions of Mongolia. The companies have also signed a Memorandum of Understanding of natural gas sale and purchase agreement of South Sulige Block located in Erdos.

The article reports on the decision of the National Development and Reform Commission (NDRC) of China to increase natural gas price in whole domestic area. The prices increases took effect on December 26, 2005. An NDRC spokesman said that the reform of natural gas price lagged behind the price reforms for oil, coal and electricity.

The article focuses on the National Development and Reform Commission's approval of CNOOC Gas & Power Ltd.'s construction of natural gas power plants in Fujian on December 20, 2005. It reports on the Commission's issuance of documents permitting the CNOCC Fujian liquefied natural gas project. The total installed capacity and the power output of the project are discussed.

The article reports on China's signing of five cooperation agreements with Saudi Arabia including one on oil, natural gas and mining cooperation protocol. Both countries have committed themselves to further develop a broader economic and diplomatic partnership. According to the Web site oilnews.com.cn, Saudi Arabia is planning to build a large oil storage base in Hainan province.

The article presents information on a project based on coal slurry gasification technology jointly undertaken by Yankuang Group and East China University of Technology in China. The multi-nozzle opposed coal slurry gasification unit has passed experts' appraisal organized by China Petroleum and Chemical Industry Association. The airflow-bed gasification theory has reached the world leading level and laid a solid foundation for the scientific development of airflow-bed gasification technology. Multi-nozzle opposed coal slurry gasification units started construction in Yankuang Guotai Chemical Co. Ltd.

The article reports on the decision of Ivanhoe Energy Inc. to farm out 10% of its exploration and development contract for the Zitong Block in China's Sichuan Basin to Mitsubishi Gas Chemical Co. Inc. Mitsubishi will pay Sunwing U.S.$4 million for a 10% interest in the project, subject to approval of the farm-out by China National Petroleum Corp. and PetroChina Co. Ltd. Mitsubishi will be given the option to increase its participating interest to 20% by paying U.S.$400,000 plus costs per percentage point prior to any discovery. Ivanhoe Energy indicated that the agreement with Mitsubishi provides additional funding to continue its exploration drilling activities in the Sichuan basin.

The article reports that CNOOC Ltd. has signed a definitive agreement with South Atlantic Petroleum Ltd. (SAPETRO) to acquire a 45% working interest in an offshore oil mining license "OML 130" in Nigeria. OML 130 is enclosed by both a Production Sharing Agreement and a Production Sharing Contract. Both of these agreements governs a 50% interest in OML 130. SAPETRO is the only contractor and 100% interest holder in the PSC. Under the agreement, CNOOC will be acquiring a 90% interest in the PSC and thus, a 45% working interest in OML 130.

The article reports that Shandong Development and Reform Commission has approved the 100,000 t/a ion-membrane caustic soda project jointly funded by Shandong Dongming Petroleum Group and Beijing Wanhai Petrochemical Industry and Trade Co. Ltd. There is a total investment of RMB270 million in the project, and will start production at the end of 2006.

The article reports that the technology for the synthetic gas production through the natural gas noncatalytic and partial-oxidation process developed by Clean Coal Technology Research Institute of East China University of Science and Technology has been successfully used in the oil- to-gas project of the large ammonia unit in Inner Mongolia Tianye Chemical Group. The new technology has simple process flow and needs no high-priced nickel catalyst.

The article reports that Sinopec Southwest Co. has recently discovered another large high-quality self-contained gas field in Xindu in northern suburbs of Chengdu, China. The gas field has proven reserves of 17.0 billion m3, and proven and controlled reserves of 27.0 billion m3 . Xindu Gas Field and Luodai Gas Field respectively located in northern suburbs and eastern suburbs of Chengdu both provides good product quality and convenient gas transmission. High-purity and high-quality natural gas contains no hydrogen sulfide, needs no desulfurization and purification facilities and can be directly transmitted to users.

The article focuses on the impact of natural gas price adjustment on the petroleum and chemical industry. The National Development and Reform Commission decided to make a nationwide rise of the natural gas price on December 26, 2005. Major oil/gas producers are likely to achieve profit from the natural gas price readjustment. The future price for natural gas supply will be fixed through the consultation with suppliers. Sichuan Chemical Works (Group) Ltd. has announced that based on the natural gas price rise defined by the National Development and Reform Commission the cost of major products in the company will increase by around RMB50 million in 2006.

The article reports that Guangxi Beihai XinAo Fuel Gas Co. Ltd. has commissioned the first phase of its liquefied natural gas project on Weizhou Island, China, on December 3, 2005. The project, worth RMB350 million, is to be completed in two phases. The first phase of the project, with an investment of RMB150 million, begun on June 30, 2005. The second phase of the project is expected to begin in early 2006. The project, after being completed, is expected to generate annual sales revenue of RMB200 million.

The article reports that Yakela Gas Gathering and Processing Station of Sinopec Northwest Co. has begun its operations from November 29, 2005. The facility has a gas transmitting capacity of 1.0 billion cubic meters/a. The gas field will supply 1.0-1.5 million cubic meters of natural gas to a chemical fertilizer plant in Kuche and 500,000 cubic meters of natural gas to other facilities daily. The unit will also be occasionally used for supplying natural gas to the west-east gas transmission pipeline.

The article reports that China's National Development and Reform Commission (NDRC) has increased the price of natural gas in the country, affective from December 26, 2005. The prices of gas used for industrial or urban utility was increased RMB0.15 per cubic meter, which represented an increase of RMB0.05. On the other hand, the price of gas used for fertilizer production increased to RMB0.10, representing an increase of RMB0.05. The NDRC also announced to switch to a market-oriented price mechanism for natural gas.

The article focuses on the commendation of Sinopec Corp.'s natural gas project in Daniudi Gasfield at the first station of the Dayu gas transmission pipeline located in Erdos, Xinjiang Xian, China. It has two phases: gasfield development and gas transmission. The first includes 248 wells and 217 of them were already completed by the end of October 2005. The actual output is higher than expected capacity. The second phase includes a transmission pipeline from Tabamiao to Yulin and related ground facilities.