China on Monday launched a new state-owned enterprise to manage the country’s oil and gas pipelines, as part of efforts to bolster the role of gas in the country’s energy mix, reported the Financial Times.
The majority of pipeline infrastructure currently run by state-owned groups China National Petroleum Corp, Sinopec and Cnooc will be handed over to the new company, in a move to provide other industry players fairer access, China’s official Xinhua news agency said.
China is overhauling its oil and gas industry in a bid to reduce reliance on polluting coal and has also sought to secure its energy supply by diversifying imports of liquefied natural gas.
China’s pipelines, which already run at maximum capacity during peak seasons, are expected to need to handle 2.5 times the current gas demand by 2040, according to consultancy Wood Mackenzie.
