The newly created Chinese state-owned company China Oil and Gas Pipeline Network (also known as PipeChina) has reached an agreement to take over oil and gas pipelines, gas and LNG receiving terminals and storage facilities from the state-owned oil and gas groups PetroChina (subsidiary of CNPC) and Sinopec for a total of CNY 391bn (US$55.9bn). PetroChina plans to spin off pipeline and storage facilities, an LNG regasification terminal in Shenzhen and ancillary facilities for CNY 269bn (US$38bn), while Sinopec will sell some of its pipelines (including the Ylin pipeline) and the Beihai LNG terminal for CNY 123bn (US$17.5bn). The transaction will not include PetroChina's 54.4% stake in Kunlun Energy, which owns gas pipelines in the Shaanxi province and in Bejing. It is expected to close before 30 September 2020.
PipeChina was created in December 2019 to bring together the long-distance pipelines owned by three state-owned energy companies, namely PetroChina, Sinopec and CNOOC, in an attempt to guarantee a neutral access to the domestic oil and gas pipeline network (mainly owned by PetroChina) and to encourage smaller and non state-owned companies in the oil and gas sector. The new company is tasked with investing in, building, interconnecting and operating oil and gas pipelines. PipeChina is controlled by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC). In April 2020, CNOOC signed pipeline assets transfer agreement with PipeChina. After the announced sales, PetroChina will own 29.9% in PipeChina, while Sinopec will own 14% and CNOOC 2.9%.