China’s state-owned energy network company PipeChina has bought a number of pipeline and storage assets from PetroChina and Sinopec for a total of CNY 391.4 billion (€48 billion).
PipeChina was set up in December 2019, to merge the distribution assets of China National Offshore Oil Corporation (CNOOC), China National Petroleum Corporation (CNPC) and Sinopec, to improve efficiency and access for smaller companies, and help China meet its energy needs.
From PetroChina, PipeChina has bought various major oil and gas pipelines, gas storage facilities, oil storage facilities, LNG terminals and ancillary facilities, for CNY 268.7 billion, made up of a 29.9% stake in PipeChina, worth CNY 149.5 billion, with the remainder in cash. PipeChina’s acquisitions from PetroChina include a 72.3% stake in PetroChina Pipeline Company, a 70% stake in PetroChina Shandong Gas Pipeline Company, a 70% stake in PetroChina Shandong Oil Transmission Company and a 51% stake in PetroChina Huixin Oil Products Storage and Transmission Company.
From Sinopec, PipeChina has bought all of its natural gas and liquid pipeline assets and the 6 million TPA Beihai LNG terminal for CNY 123 billion, made up of a combination of cash and a 14% stake in PipeChina.
The deals are expected to be completed by 30 September 2020.