October 25, 2007 -- Construction on the first refined oil pipeline from Pengzhou to Leshan with a total length of 205 kilometers and an annual transportation capacity of 3 million tons will commence at the beginning of next year, reported the Sichuan Daily. It is expected to be completed and put into operation by the end of 2008. Three oil stores alongside the route will also be expanded to release oil transportation pressure from Sichuan to the south.

According to the Sichuan Daily, the only refined oil pipeline in Sichuan Province is the Lanzhou-Chengdu-Chongqing cross-province line from Lanzhou, Gansu Province to Chongqing, with an annual transportation capacity of 5.8 million tons. It transports 70 percent of refined oil to Sichuan Province, while the remaining 30 percent is transported via railways and expressways. However, the lack of transportation capacity has resulted in south Sichuan facing a shortage of refined oil.

Petro China has invested 0.47 billion yuan (US$62.8 million) to construct this pipeline from Pengzhou to Leshan and 0.27 billion yuan (US$36 million) in technical alteration and expansion of the three oil stores alongside the pipeline in Shuangxi, Meishanqinglong and Lesan, reported the Sichuan Daily