August 10, 2020 [Reuters] – China’s newly established pipeline operator, PipeChina, is expected to start official operations in late September after taking over a trunk of midstream energy assets from national oil companies valued at $56 billion.
PipeChina is expected to help reduce and deregulate natural gas prices and increase connectivity within China’s gas pipeline network amid Beijing’s push to improve gas consumption.
According to the spin-off plans revealed last month, PipeChina, known formally as China Oil and Gas Pipeline Network, will take over a bulk of trunk oil and gas transmission pipelines, as well as a portion of gas storage facilities and liquefied natural gas (LNG) terminals from PetroChina and Sinopec.
Here is a breakdown of some trunk natural gas pipelines, gas storages and LNG terminals that are scheduled to transfer to PipeChina from the national oil companies.
Oil infrastructures are not included in this factbox. Information is gathered from official websites of PetroChina, Sinopec and CNOOC, and stock exchange filings. PetroChina and Sinopec declined to give further comments on its assets beyond their stock exchange filings on July 23.
Sinopec is set to transfer its Wen 23, Wen 96 and Jintan gas storage to PipeChina, but it’s not clear which storage facilities will be spun off from PetroChina.
PetroChina’s Shenzhen LNG terminal, which is still under construction, and Sinopec’s Beihai terminal is expected to be transferred to PipeChina. CNOOC, who has 10 operating LNG terminals and three under construction, has not revealed its asset transfer plan to PipeChina. Seven of those,
including two under construction, are expected to be absorbed late this year, a CNOOC official had said.
PipeChina is also building its own terminal in Longkou with receiving capacity of 5 million tonnes in the first phase.
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