PetroChina has begun construction of its long-planned 2,625-mi East-West gas pipeline, according to Reuters.

Construction began in sensitive wetlands and on crossings for the Yangtze, Yellow and Huai rivers, as well as two other sections: Lunnan to Kuerle in Xinjiang, and Jiangsu province to Shanghai.

Work on the rest of the main line will start in the first half of this year for an early 2004 completion. PetroChina said an outside foreign firm will supervise construction.

The U.S. $18 billion pipeline is designed to deliver gas from the northwestern region of Xinjiang to the eastern city of Shanghai, markets in the Yangtze River delta region and provinces along the line. Completion is scheduled for late 2003.

A consortium that includes PetroChina, Royal Dutch/Shell, Russia's Gazprom and Stroytransgaz, and Hong Kong & China Gas Co. Ltd. is developing the line.