SINGAPORE - Chinese state-run utility Huadian Group and independent gas company Guanghui Group have started laying a natural gas pipeline that would connect a gas receiving terminal with industrial users in east China's Jiangsu province, local state media reported on Tuesday.

The 171-km Qitong pipeline, which has an annual transport capacity of 4 billion cubic metres, starts at Qidong, where privately-run Guanghui Group operates a liquefied natural gas receiving terminal, and ends at Nantong city, Xinhua Daily reported.

The pipeline, which would cost 1.259 billion yuan ($185.84 million) to build, is likely to be operational by the end of October 2019, the report said, adding that it would then be linked to the West-to-East gas pipeline project operated by state energy group PetroChina 0857.HK . ($1 = 6.7747 Chinese yuan)

(Reporting by Chen Aizhu; Editing by Subhranshu Sahu) ((aizhu.chen@thomsonreuters.com; +65 6870 3284; Reuters Messaging: aizhu.chen.reuters.com@reuters.net))