A subsidiary of China's Sinopec has agreed to pay compensation of 29.8 million yuan (4.5 million U.S. dollars) after a gas pipeline explosion caused a dozen casualties and damaged property in central China's Hubei Province.
The deal, signed between Cuijiaba Township Government in the city of Enshi and Sinopec Sichuan to East China Natural Gas Transmission Pipeline Co. Ltd., was concluded on Thursday, according to local government.
Sinopec is China's leading state-owned oil and gas company. Early in the morning on July 20, the pipeline transmitting natural gas from western Sichuan Province to the country's east broke and exploded in the township. The accident killed two people and injured nine. Five villagers' houses were instantly destroyed, and the homes of 74 others collapsed or were damaged. It also affected gas transmission to Hubei, Jiangxi, Jiangsu, Zhejiang and Shanghai until July 30.
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