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          BIZCHINA> Top Biz News
          China considers new law to protect oil pipelines
          (Xinhua)
          Updated: 2009-10-27 15:20

          Chinese legislators are discussing a draft law on the protection of oil and gas pipelines, which, they say, are facing growing problems due to rapid urbanization and the expansion of pipeline networks.

          Those who steal from pipelines could face heavy fines of up to 10 times the value of the stolen oil or gas, according to the draft law tabled with the country's top legislature on Tuesday.

          State Council (China's Cabinet) official Cao Kangtai told lawmakers the safety of oil and natural gas pipelines in China "urgently needs protection" through legislation.

          The network, which carries 70 percent of the country's crude oil and 99 percent of its natural gas, was "threatened by rampant theft of oil and gas through illegal siphoning on the pipelines, as well as possible terrorist attacks," said Cao, director of the State Council's Legislative Affairs Office.

          Rapid urbanization had resulted in the reckless construction of buildings and roads within buffer areas for the pipelines in recent years, making their protection increasingly difficult, Cao said.

          "We need a special law to regulate and better coordinate pipeline construction with urban planning, to enhance protective measures, and to clarify responsibilities of different departments," he told the 11th meeting of the Standing Committee of the 11th National People's Congress (NPC), which is convening from Oct 27 to 31.

          The draft law requires governments at different levels, particularly state and provincial-level energy departments, to enhance supervision of protection work.

          The draft also detailed the responsibility of enterprises that own and operate the pipelines, as well as the planning, the construction and protective measures.

          Because of growing dependence on oil and gas, the total length of oil and gas pipelines in China has risen to 70,000 km from 22,000 km in 1997, stretching from oil and gasfields in western and northeastern regions to densely populated coastal areas in the east.

          China was working with Kazakhstan, Russia and Myanmar to build transregional pipelines, Cao said. By the end of 2010, the network would exceed 90,000 km.

          A document circulated at the meeting said the China National Petroleum Corporation (CNPC), which owns 65 percent of the country's oil and gas pipelines, reported more than 36,000 cases of oil theft from pipelines between 2002 and 2006.

          Related readings:
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          Surveys conducted by the CNPC and the China Petroleum & Chemical Corporation (Sinopec) in 2006 found about 15,000 buildings were illegally constructed above or near the pipelines.

          The draft law would prohibit activities that could threaten the safety of pipelines, such as opening or shutting pipeline valves without authority, and moving, dismantling or drilling pipelines.

          Driving heavy vehicles where pipelines are buried, and removing or damaging signs on pipelines would also become criminal offences.

          Certain activities, such as mining, tree-planting, construction of buildings, blasting and digging near pipelines, must be done with official authority, according to the draft.

           


          (For more biz stories, please visit Industries)
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