The Chinese government has given the go ahead for a new natural gas pipeline system that will serve the northern regions of Shanxi and Shaanxi, which lies to the west of Beijing. This new pipeline project of 34.2-kilometre (21.3 mile) pipeline, will be built by Qinjin Natural Gas Co, is designed to have annual gas transmission capacity of 3.3 billion cubic metres and connect Ji county in Shanxi and Yichuan county in Shaanxi.

It is expected to cost some 354 million yuan ($54.80 million) reports the National Development and Reform Commission (NDRC). Some 70% of its cost will be covered by bank loans and 30% by the company set to build the pipeline, Qinjin Natural Gas Co.