China is moving ahead with its mega plan to consolidate state-owned pipeline and related assets by requiring the country’s three largest oil companies to hand off management of nearly half of their liquefied natural gas (LNG) terminals to a new state-owned giant, reported Caixin.
The 10 terminals are among the first batch of assets set to be transferred to China Oil & Gas Piping Network Corp., an energy company established late last year to take over managing some of the infrastructure of China National Petroleum Corp., China Petrochemical Corp. (Sinopec) and China National Offshore Oil Corp. (CNOOC).
Although CNOOC announced in April that it had signed a contract for the terminal transfer, the two other giants have not made any similar public announcements.
The new company is part of a sectorwide reform that central planners hope will boost investment in and construction of oil and gas pipelines as part of efforts to safeguard China’s energy security.
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