CNPC-Kunlun Energy deal would create gas giant

Kunlun Energy (0135.HKG)., a unit of China National Petroleum Corp., is in talks to buy PetroChina Kunlun Gas, Bloomberg reported, citing anonymous company officials. Kunlun Energy is CNPC’s main commercial gas supplier in China, while Kunlun Gas distributes fuel to households in more than 100 Chinese cities. The deal could exceed US$3 billion, according to an analyst’s estimate, and is being discussed for the end of the year. Combining units to create a single gas company would help CNPC and Kunlun Gas compete with private rivals, ahead of an inflow of Russian fuel at the end of the decade.