Potential gas reserves at Tarim, China's largest inland basin with an area of about 530,000 square km (204,580 sq miles), are said to be 8.4 trillion cubic meters or one-fourth of China's total natural gas reserves on land, according to reliable sources.

The west-east pipeline project which kicked off early this month, will cost 140 billion yuan (US$17 billion). It is expected to carry 12 billion cubic meters of gas annually for industrial and domestic use in Shanghai and other parts of the Yangtze River Delta when completed in 2005.

Over the past years, the Tarim Oilfield Company has verified 12 gas fields and discovered areas bearing rich natural gas resources in the Tarim Basin.

Ministry of Land and Resources experts evaluate the gas bearing area at Kela No.2 gas field as about 47 square kilometers (18.14 square miles), with a proven gas reserve of 250.6 billion cubic meters. The annual gas output in the area is expected to reach 10 billion cubic meters.

China has chosen Kela No.2, Yingmaili, Yangtake, Kelake, Yaha, Yudong and Yakela gas fields in the basin as major suppliers for the massive gas project.