The Panzhihua-Liangshan natural gas pipeline project recently commenced construction in Xichang City, Liangshan Prefecture. Upon completion and operation, it will mark the end of Liangshan's history of lacking pipeline natural gas access.
According to officials from the Liangshan Development and Reform Commission, the project has been in planning for 13 years. It was included in the provincial key project list in 2022 and received final approval in June 2025.
The arrival of natural gas in the Greater Liangshan region is expected to bring significant benefits to local residents and businesses.
**Lower Costs, Improved Living Standards** "Life will become much more convenient," said Wang Yue, a resident of Qijiatun Community in Xichang, expressing excitement about the project.
Liangshan is one of three ethnic minority regions in Sichuan without pipeline natural gas. Due to complex geography and fragile geological conditions, pipeline construction has been challenging, forcing the region to rely on liquefied natural gas (LNG) transported by tanker trucks—leading to high costs. Wang noted that household LNG prices reach 5.2 yuan per cubic meter, significantly higher than piped gas in other cities.
Local authorities estimate that the new pipeline will drastically reduce gas costs for both households and industries. In Xichang, residential gas prices are projected to drop by about 33%, while industrial users could see a 20% reduction.
Officials from the Liangshan Development and Reform Commission stated that in Xichang and Dechang—the first cities to benefit—annual household gas expenses could decrease by over 40 million yuan based on current bottled gas consumption.
Businesses are particularly eager for the change. Yuan Jian, Deputy General Manager of Xichang Zhengzhong Food Co., explained that some baking equipment relies on gas, and high costs have hurt competitiveness. With the pipeline underway, the company plans to transition more equipment to natural gas to cut expenses.
**Project Details & Broader Impact** The 157-kilometer pipeline will run from Mengliang Station in Panzhihua’s Yanbian County to Xichang Station in Youjun Town, with an annual capacity of 630 million cubic meters (expandable to 1.04 billion). It is slated for completion by June 2027.
To ensure smooth progress, Xichang Mayor Yang Chuan pledged streamlined approvals for land, water, and electricity access, along with enhanced administrative support.
Beyond cost savings, the pipeline is expected to reshape Liangshan’s energy mix. Currently reliant on coal and electricity, the prefecture is accelerating hydropower, wind, and solar projects, with clean energy capacity set to exceed 55 million kW by year-end. The new gas supply will further diversify energy sources and support local processing of strategic resources like vanadium, titanium, and rare earths.
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