PetroChina to Offload Stake in Pipeline Business

PetroChina on Monday said that it plans to establish a wholly owned subsidiary, PetroChina Eastern Pipelines and will subsequently transfer its 100% equity interest in the subsidiary to rope in private investors.

Eastern Pipelines will contain assets from the first and second phase of PetroChina’s West-East pipeline.

“The company intends to establish a wholly owned subsidiary, PetroChina Eastern Pipelines Co., Ltd., by making capital contribution with relevant assets and liabilities of the first and the second West-East Gas Pipeline managed by the West-East Gas Pipeline Branch, together with the relevant assets and liabilities of the second West-East Gas Pipeline,” PetroChina said.

The new subsidiary will have net assets of either 29 billion yuan ($4.65 billion) or 39 billion yuan, the company said.

“The equity transfer will help the company develop the mixed ownership model, optimize the resource allocation and financing structure and diversify the ownership structure of the company,” the company statement added.