China National Petroleum Corporation (CNPC) has started to build the Wenjisang gas storage cluster project in Tuha Oilfield in the Xinjiang Uygur Autonomous Region in northwest China.

The project, which is expected to be completed in 2025, will have a total storage capacity of 5.6 bcm and a working gas capacity of 2 bcm. China plans several gas storage projects in Xinjiang to form a hub with a total storage capacity of 20 bcm.

CNPC already operates 22 underground gas storages (UGS) with a total peak shaving capacity of 11.1 bcm, helping maintaining gas supply during peak gas consumption season. Over the 2021-2025 period, CNPC plans to invest CNY 100bn (US$14bn) to 6 major gas storage centres across China, with a total storage capacity reaching 27 bcm. China's demand for peak shaving capacity is estimated at more than 100 bcm by 2030.