OREANDA-NEWS. March 25, 2011. Kunlun Energy's (00135.HK) Qinghai subsidiary has begun construction of a natural gas plant in Golmud cit y in Northwest China's Qinghai province, according to a report by Chin a Oil News, a CNPC-run newspaper.

The plant, an investment of Kunlun Energy which is controlled by PetroChina (PTR.NYSE; 601857.SH; 0857.HK), and managed by PetroChina Qinghai Oilfield, is aimed at improving the energy supply mix and prov iding clean energy to Qinghai and Tibet Autonomous Region.

It involves a total investment of 225 million yuan and is expect ed to have a daily output of 350,000 cubic meters after the first-phas e project is completed.

The project includes the building of natural gas purifying and l iquefying facilities, gas stations, 5,000 cubic meters of storage faci lities, and related public works.

The plant is expected to go into operation on October 15, 2011.