BEIJING (Commodity Online) : China’s largest oil refiner, Sinopec said its natural gas output will increase 50% to 12 billion to 13 billion cubic meters next year.

In a statement issued here the company said it is estimated to produce more than 8 billion cubic meters of natural gas this year.



Sinopec attributed the growth in natural gas production in 2010 to the contribution of its largest gas field, the Puguang field, in Sichuan Province, which began operation last month and will come into full operation in December.

Puguang field will be able to produce 12 cubic meters of natural gas per year. The gas field may increase Sinopec's 2010 operating profit by $1.03 billion, according to some analysts.

Sinopec is hoping to make its gas business a new driver of earnings as there is a rising demand for gas in China and a new gas pricing mechanism will be introduced, which is expected to push local gas prices higher.

The Chinese government plans to boost the nation's natural gas consumption to account for 10% of its energy mix by 2020, up from 3% in 2005.

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