Furthermore, China’s gas production is very small due to a limited reserve. At the end of 2004, the proved reserve of natural gas in China was 2.23 trillion cubic meters, which was only 1.2% of world’s total reserve. To increase production capacity and consumption of natural gas, China has embarked on a major expansion of gas infrastructure. The West-East pipeline linking Shanghai and Xinjiang is now operating commercially and several LNG receiving terminals are also under construction or consideration.