Beijing announced on Monday the establishment of a national oil and gas pipeline firm, which will combine most of the country’s energy infrastructure and will provide fair market access to investors.
According to consultancy group Wood Mackenzie, the new firm may be worth between $80 billion and $105 billion.
“The new company will separate [oil and gas] transportation, production and sales, and open [transportation] to third-party entities, which will benefit market competition,” Xinhua News Agency reported, citing an unidentified official.
🆕Dec.9, China announced the creation of #NationalOilandGasPipelineCompany to help expand its national energy infrastructure, which marks a key move in #China‘s deepening #oil and #gas reforms. pic.twitter.com/vXyvQ1QdZr
— Sinopec (@SinopecNews) December 9, 2019
It will merge the networks operated by China’s three state-owned giants – China National Petroleum Corporation (CNPC), Sinopec and CNOOC – under a single operator.
As of end-2018, CNPC owned 63 percent of China’s mainstream oil and gas pipelines, while Sinopec and CNOOC controlled 31 percent and six percent, respectively. (RT)