BCN-40 China’s oil giants likely to spin off pipeline assets into new company, report

314

ZCZC

BCN-40

CHINA-ENERGY-OIL-GAS-PIPELINE

China’s oil giants likely to spin off pipeline assets into new company,
report

BEIJING, June 22, 2018 (BSS/Xinhua) – Three Chinese oil and natural gas
giants including CNPC, Sinopec and CNOOC will likely spin off their pipeline
assets into a new pipeline network company, the Xinhua-run cnstock.com
reported on Friday.

Proportion of their stakes in the new company will be determined by the
valuation of their pipeline assets. The new company is expected to be valued
at approximately 300 billion yuan to 500 billion yuan.

According to the report, after the new pipeline network company has
acquired assets, it plans to introduce social capital including state
investment funds and private capital and bring the proportion of the social
capital in the company to be about 50 percent.

At present, CNPC has owned more than 75 percent of the national pipeline
network assets. As of the end of 2017, CNPC’s domestic oil and gas pipelines
had a total length of 82,374 kilometers, of which the length of natural gas
pipelines was 51,315 kilometers.

BSS/XINHUA/HR/1450