China is the world's most populous country, and the world's largest consumer of energy, second only to the US. The rapid growth of China's economy has led to a corresponding increase in its energy demands. Historically, natural gas has not been a major fuel in China, but given its limited domestic fuel reserves, and the environmental and social benefits of using natural gas, China has now embarked on a major expansion of its gas infrastructure. The largest reserves of indigenous natural gas are located in Western China, and the piping and distribution of this gas to the major centers of population in its east would contribute greatly to China's efforts to reduce pollution and provide fuel for efficient power generation. Thus the west-east pipeline project is a major item on government agenda.

To achieve this goal, more than 60 invitations have been sent out to overseas investors to tender for this project. The UK's gas pipeline industry has developed over the past thirty years, and it has become the country's most reliable form of energy, as well as sustaining its cutting edge status as regards the best practice, design, technological development and management of pipeline projects. Two of its largest oil and gas enterprises, BP and Shell, have invested, or expressed interest in investment, and their substantial capital and available expertise are known throughout the international market.

This workshop was the third concerning oil and gas to be held in China in recent years. The first, in October 1998, was attended by British Prime Minister, Tony Blair, to discuss cooperation within the petrochemical industry. The second was attended by Stephen Byers, UK Secretary of State for Trade and Industry, in June 1999, and focused on the utilization of natural gas. At this, the third event, the UK Minister of Trade, Richard Caborn, made the opening speech, expressing the hope that this workshop might lead to mutually beneficial partnerships between UK and Chinese companies.

Senior technicians from well-known UK pipeline companies, Kvaerner, Pipeline Integrity, Advantica, and Lloyd's Register, attended the workshop, giving presentations to their Chinese counterparts and holding discussions.

Five years ago, most European companies focused their investment on China's bigger cities, such as Beijing and Shanghai. Today, however, they have signed contracts with cities in western China, and with medium-sized cities like Qingdao and Dalian, indicating their optimism for the future of the Chinese market.

As Minister Caborn stated in the workshop, Britain has always supported China's accession to the WTO, and will continue to be top investor in China out of all its fellow European Union members.

(21dnn 04/28/2001)