On Thursday, state-owned oil and gas company PetroChina announced its plan to sell its major oil and gas pipelines, along with storage facilities to the new China Oil and Gas Pipeline Network (PipeChina).
PipeChina will pay CNY268.7 billion (USD38.36 billion) to PetroChina for the sale. PetroChina will also get a share of 30% in PetroChina worth CNY149.5 billion (USD21.35 billion) while the remainder of the purchase would be paid in cash. PetroChina’s assets of Kunlun Energy is not included in the sale. PetroChina owns a 54.4% stake in it.
After the transaction is complete, PipeChina will be an associate company of PetroChina, a listed arm of China National Petroleum Corp. (CNPC).
