National Oil & Gas Pipeline Co. (China)
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In March 2019 the Chinese Communist Party announced plans to create a new national pipeline company at the 13th National People's Congress.[1] The company will be called the National Oil & Gas Pipeline Co.[2]
Transfer of Assets
An estimated 500 billion yuan ($70 billion) in assets will be transferred to the new company from Sinopec, China National Petroleum Corp, the parent company of PetroChina, and China National Offshore Oil Corp.[1] The transfer would be complete by 2021 and a potential IPO would be held in 2023.[3]
China's three oil companies would hold an estimated 70% ownership in National Oil & Gas Pipeline Co., led by PetroChina with 50%.[4] The remaining ownership would be held by the Chinese government.[3]
Financing
In September 2019 it was announced that three banks had been chosen to finance the creation of the company: BOC International Holdings Ltd., China International Capital Corp. and CLSA Ltd.[5]
Expansion of Network
As of 2015, China had 64,000 kilometers (about 40,000 miles) of pipelines carrying natural gas, 27,000 carrying crude and 21,000 carrying oil products, according to China’s main economic planning agency. By 2025 its goal is to expand that to 163,000 kilometers for gas, 37,000 for crude and 40,000 for oil products.[2]
- ↑ 1.0 1.1 China Revives Oil And Gas Reform Plan, Radio Free Asia, Mar. 11, 2019
- ↑ 2.0 2.1 Why China’s Putting All Its Oil Pipes in One Company, Washington Post, Oct. 21, 2019
- ↑ 3.0 3.1 China’s pipeline reform: expect higher gas prices in the short-term, Wood Mackenzie, Oct. 9, 2019
- ↑ China’s pipeline reform: expect higher gas prices in the short-term, Hellenic Shipping News, Oct. 14, 2019
- ↑ CLSA, BOCI Among Banks Chosen for China National Pipeline Giant, Bloomberg, Sep. 3, 2019
