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PetroChina-Shell Changbei Gas Project 2010 Output At Record

JANUARY 6, 2011

SHANGHAI (Dow Jones)–The Changbei natural gas project joint venture between China’s biggest gas producer, PetroChina Co. (PTR), and energy major Royal Dutch Shell PLC (RDSB.LN) in northern China produced a record 3.48 billion cubic meters of gas in 2010.

Last year’s output exceeded its target by 11%, PetroChina’s parent company, the state-owned China National Petroleum Corp., said on its website Friday.

The gas project, located in Shaanxi province, has pumped a total of 11 billion cubic meters of gas since it started commercial operations in March 2007, CNPC said.

The two energy firms are also cooperating in other gas projects in China. Last month, they started to drill the first evaluation well at the Fushun shale gas block in Sichuan province, which covers an area of approximately 4,000 square kilometers.

-Jing Yang contributed to this article; Dow Jones Newswires; (8621) 6120 1200; [email protected]

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