BEIJING, Dec. 9 (Xinhua) -- China moves further in reform of oil and gas operations with China oil and gas pipeline company officially established Monday in Beijing.
The new company would run assets such as trunk pipeline networks, provincial-level pipeline networks, some LNG receiving stations and gas storages, as well as pipeline network dispatching business previously owned by China's three oil and gas giants, namely China National Petroleum Corporation (CNPC), China Petrochemical Corporation (Sinopec Group) and China National Offshore Oil Corporation (CNOOC).
State-owned Assets Supervision and Administration Commission of the State Council (SASAC), CNPC, Sinopec Group and CNOOC have 40 percent, 30 percent, 20 percent and 10 percent stake, respectively, in the new unit, reported Economic Information Daily.
The new established firm marks a transition from asset management to capital management in the ongoing state-owned enterprise (SOE) reform, according to a report by Sinopec Economics & Development Research Institute, noting that after asset transfer completes, the new company would bring in about 50 percent social capital including state investment funds and private capital for pipeline network expansion.
Next step, the new company is likely to seek public listing, the report predicts.
The new company marks a reshape of the domestic natural gas market which would enhance competition, increase supply and capital as well as improve efficiency, said Liu Manping, chief analyst with price monitoring center with the National Development and Reform Commission. (Edited by Niu Huizhe, niuhuizhe@xinhua.org)
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