China plans to create a new state-owned company to manage the country’s entire long-distance oil and gas pipeline network, allowing its existing energy giants to focus on exploration, Reuters reports.
The plan is set to be announced before the end of the year and would represent the largest reshuffle of China’s energy industry since 1998, when Beijing created Sinopec and PetroChina.
The National Development and Reform Commission has already approved the plan, including the details of which pipeline assets will be transferred to the new company, a source told Reuters. The State Council now needs to grant final approval for the move.
The state-run energy majors are already making preparations for the reshuffle, with PetroChina moving the management of its pipeline segment to a separate office building in Beijing, another source said.