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The Sulige Gas Field with a reserve of 533.6 billion cubic meters, the largest in China, lies in the Mu Us Desert of north China's Inner Mongolia Autonomous Region and was discovered in August 2000.
PetroChina Changqing Oilfield Company planned its exploitation for five years, company officials said.
The plant's daily output is expected to be 4.5 million cubic meters, enough for the daily use of six million households.
The officials said the field would supply north China, including the capital Beijing, Tianjin and Hebei Province.
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