PetroChina (NYSE:PTR) Building Tibetan Liquefied Natural Gas Project

PetroChina (NYSE:PTR), which is the subsidiary of China National Petroleum Corp, will be building a liquefied natural gas project in Tibet.

The capital city of Tibet, Lasa, will be the location of the project and destination of the gas.

Once that project is completed, expectations are the project will expand to other cities in Tibet.

The first step in the process will be to build a liquefied natural gas terminal, which will be able to receive the product, which will come from the Qunghai Province of China.

Next they're going to build a natural gas network throughout the city of Lasa, and finally, they'll put together a refueling network around the city.

Liquefied natural gas should start supplying Lasa by October 2011.

For those without much knowledge of India/China relations, this could be considered a threat by India, who has been getting nervous over the increased military presence of China in Tibet, and could be more of an effort to supply energy for them than the stated purpose of increasing the use of natural gas in the mountainous country.

Chevron (NYSE:CVX) Increases Production 7 Percent

At their annual shareholder meeting, Chevron (NYSE:CVX) CEO John Watson told investors that production for the company in the last year rose by 7 percent, and the company will continue to increase production over the next several years.

The primary engine of growth will be the Wheatstone and Gorgon natural gas projects based in Australia.

Liquid natural gas at the Gorgon project is expected to produce gas by 2014. So far they've plowed $37 billion into Gorgon. Wheatstone is at the front-end engineering and design stage, and investments decisions on that are expected to come in 2011.

Over the next three years plans are in place to launch oil and gas production in 10 capital projects estimated to cost over $1 billion each.

Another seven multibillion-dollar startups are also scheduled for 2011 and 2012.