PetroChina, China’s state-owned oil and gas firm, said on Thursday it would sell its major oil and gas pipelines and storage facilities to the newly launched China Oil and Gas Pipeline Network for RMB 268.7 billion ($38.36 billion), reported Reuters.
The creation of the new company, also called PipeChina, marks the largest industry reshuffle in the country in the past two decades, aimed at providing fair market access to infrastructure and boost investment in oil and gas production.
Beijing started considering reforming the sector nearly a decade ago but only approved the plans early 2019, spurred by a national campaign to boost consumption of the cleaner burning natural gas and curb dirtier coal.
As part of Thursday’s deal, PetroChina said it will get a stake of about 30%, worth RMB 149.5 billion, in PipeChina and that the new entity would pay the rest in cash. The sale excludes the assets of Kunlun Energy,in which PetroChina has a 54.4% stake, it said in a statement.