PetroChina restores a third of halted Sichuan gas

By Jim Bai

BEIJING (Reuters) - PetroChina (0857.HK: Quote, Profile, Research), the main energy supplier in China's Sichuan, said on Thursday that it had restored about one-third of the natural gas output it had halted after Monday's quake, but that oil supplies were running short.

The firm had to cut production of about 6 million cubic meters of natural gas per day after Beijing ordered the precautionary closure of all mines and fields in the region, which accounts for more than 20 percent of China's gas output.

Fuel stocks in the area have drawn down after a major oil pipeline, linking Lanzhou city in the northwest with Sichuan's capital Chengdu and Chonging, was still pumping at less than capacity after resuming operations a day after the quake.

"Gasoline stocks in Sichuan are only enough for five days and diesel only enough for three days," PetroChina President Jiang Jiemin told reporters on sidelines of the company's annual shareholders' meeting.

Jiang said the firm planned to import a total of 1.5 million tonnes of refined fuel in the second quarter to boost national stocks, and an industry paper reported on Wednesday it had sent 100,000 tonnes of emergency fuel supplies to the region.

A PetroChina trader said PetroChina's imports included both gasoline and diesel, and that the firm had already secured almost all of them from the international market.

The earthquake also damaged some power facilities, but industry official say it is unlikely to lead to a sustained increase in fuel demand for power generators or other use as Sichuan is largely a rural economy and a small oil consumer.

Damaged rail lines also hampered fuel delivery into Sichuan.