Workers busy with laying an 18.1-km liquefied natural gas (LNG) pipeline on Qiaoxiang Road in Overseas Chinese Town, Shenzhen, on Tuesday, when the city's LNG project kicked off. By 2006, about 700,000 Shenzhen residents now using liquefied petroleum gas (LPG) will exepected to swith to the more environmentally friendly and less expensive LNG.

Construction of a liquefied natural gas (LNG) project costing 2.5 billion yuan (US$300 million) started in Shenzhen on Tuesday (Nov. 2).

About 700,000 Shenzhen users will use liquefied natural gas instead of liquefied petroleum gas (LPG) by the end of 2006 after the project is finished.

As part of a Guangdong project to receive imported LNG, the Shenzhen project will be built to receive natural gas from the provincial stem pipelines and then send the gas to Shenzhen users.

A ceremony to mark the beginning of the construction of a 18.1-kilometer pipeline was held in Overseas Chinese Town on Tuesday morning, presided over by Shenzhen Vice Mayor Lu Ruifeng.

Shenzhen would quicken the pace in exploring for natural gas and improve the natural gas consumption ratio in total energy consumption to protect the environment and relieve the pressure of a gasoline shortage, Lu said at the ceremony.

Compared with LPG, LNG would cost 5 to 10 percent less while producing the same energy, experts said.

As Guangdong has signed contracts with LNG suppliers at a fixed price, the project was of special importance as it would help reduce risks such as international gasoline price fluctuations, experts said.

Editor: Olivia