PipeChina acquires PetroChina, Sinopec assets
State-owned Chinese pipeline operator China Oil & Gas Pipeline Network Corp. (PipeChina) has acquired pipeline assets from both Sinopec Kantons Holding Ltd. and PetroChina Co. Ltd. PipeChina will take ownership of PetroChina’s oil and natural gas pipelines, some gas storage sites, oil storage, and LNG terminals. PipeChina also bought Sinopec Kantons’ 900-km Yulin-Jinan gas pipeline.
Assets involved in the PetroChina deal include:
- 72.2616% equity interest in PetroChina Pipeline Co. Ltd.
- 70% equity Interest in PetroChina Shandong Gas Pipeline Co. Ltd.
- 70% equity interest in PetroChina Shandong Oil Transmission Co. Ltd.
- 51% equity interest in PetroChina Huixin Oil Products Storage and Transmission Co. Ltd.
- 60% equity interest in PetroChina Jilin Gas Pipeline Co. Ltd.
- 60% equity interest in PetroChina Guizhou Natural Gas Pipeline Network Co. Ltd.
- 50% equity interest in Jiagnxi Natural Gas Investment Co. Ltd.
- 60% equity interest in Shengang Natural Gas Pipeline Co. Ltd.
- 51% equity interest in PetroChina Jilin Natural Gas Pipeline Network Co. Ltd.
- 50% equity interest in Jiangsu Rudong United Pipeline Co. Ltd.
- 50% equity interest in Fujian Natural Gas Pipeline Network Co. Ltd.
- 23% equity interest in Guangdong Natural Gas Pipeline Network Co. Ltd.
- Non-equity assets (including oil and gas pipelines, gas storage, and LNG terminals) under PetroChina’s Pipeline Branch, Southwest Pipeline Branch, West-East Natural Gas Transmission Pipeline Branch, West Pipeline Branch, Pipeline Construction Management Department, Beijing Oil and Gas Control Center, Northwest Sales Branch—Nanjing Oil Storage and Shenzen LNG Project Management Department.
The $38.3-billion deal with PetroChina gave the state oil and gas producer a 29.9% stake in PipeChina and $17 billion in cash. The Yulin pipeline cost $455 million. Sinopec will also take a 14% ownership stake in PipeChina following the deal’s closure.
PipeChina expects both deals to close September 2020.
The company was formed in December 2019 and is building a 20-million tonne/year LNG terminal in Longku, Shandong Province (OGJ Online, May 18, 2020).
Christopher E. Smith | Editor in Chief
Chris brings 32 years of experience in a variety of oil and gas industry analysis and reporting roles to his work as Editor-in-Chief, specializing for the last 20 of them in midstream and transportation sectors.
