A new liquefied natural gas (LNG) rail link between Kazakhstan and China has started operation, the first train carrying fuel arrived at the border crossing at Xinjiang on Sunday, People's Daily reported.

The new rail link, which has been commended as the next step in the energy transport connections between China and Central Asia countries, is expected to help shore-up liquefied natural gas supplies in the mainland.

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The railway would significantly boost energy transport options for China, Wang Xinchun, director of the Alashankou Free Trade Zone's economic development bureau in Xinjiang, said.

"There will be one train each week, which will transport 300-thousand tons per year. In the future, we expect to be able to increase the annual LNG imports to 800-thousand tons or more according to market demand and the needs of domestic companies," Xinchun said.

In related news, the first liquefied natural gas vessel from the lower 48 states of the United States is also heading towards China, according to a Reuters interactive map on Friday. This comes after the expanded Panama Canal allowed exports from the United States to reach the top liquefied natural gas buyers in the world based in Asia.

According to Hellenic Shipping News, the Royal Dutch Shell's Maran Gas Apollonia was seen loading gas at Cheniere Energy Inc's Sabine Pass LNG export plant in Louisiana. It reportedly passed the canal earlier this week and was heading northwest to the west coast of Mexico on Friday afternoon.

Shell, on the other hand, refused, to disclose the vessel's destination, but liquefied natural gas experts at Genscape confirmed the vessel was heading to China.

China's increasing demand for gas, which could help curb the increasing levels of pollution from coal burning, has exceeded its domestic supply since 2007, based on the U.S. Energy Information Administration data.

TagsLNG, liquefied natural gas, gas, Kazakhstan, china, energy transport