PetroChina to Sell Pipe Stake to Kunlun, Xinhua Says
Stock Chart for PetroChina Co Ltd (857)
PetroChina Co. will sell a stake in a natural gas pipeline operator to its wholly owned unit PetroChina Kunlun Gas Co., the official Xinhua News Agency reported today without saying where it got the information.
China’s biggest oil and gas producer wants to sell 60 percent of PetroChina Beijing Natural Gas Pipeline Co. to a state-owned buyer for 18.9 billion yuan ($2.8 billion), the company said in a statement to the China Beijing Equity Exchange yesterday. Mao Zefeng, PetroChina’s Beijing-based spokesman, declined to comment.
The pipeline operator was established in 1991 by PetroChina’s parent China National Petroleum Corp. and the Beijing municipal government. It was set up to build facilities to transport gas from the northwestern province of Shaanxi to the Chinese capital. Beijing’s gas demand may rise 17 percent this year, the local government said last month.
The buyer must have the ability to provide “sufficient” natural-gas supplies to the pipeline operator, according to yesterday’s statement.
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