oil field in China Photograph:( Reuters )
As of end-2018, CNPC owned 63 per cent of China's mainstream oil and gas pipelines, while Sinopec and CNOOC controlled 31 per cent and 6 per cent, respectively
China announced on Monday the establishment of a national oil and gas pipeline company in a move intended to boost competition, the Xinhua state news agency said.
The long-awaited state pipeline company aims to provide other investors fair market access to infrastructure that is mainly controlled by China's three national oil companies, Xinhua said.
"The new company will separate (oil and gas) transportation, production and sales, and open (transportation) to third-party entities, which will benefit market competition," said Xinhua, citing an unidentified official at the newly launched pipeline company.
The new entity is expected to manage most of the country's pipeline infrastructure, controlled by energy giants China National Petroleum Corp (CNPC), Sinopec and CNOOC, and some underground natural gas storage, as well as a few liquefied natural gas terminals.
As of end-2018, CNPC owned 63 per cent of China's mainstream oil and gas pipelines, while Sinopec and CNOOC controlled 31 per cent and 6 per cent, respectively.
In a separate report on Monday, Xinhua said the new entity is expected to be overseen by the State-owned Assets Supervision and Administration Commission (SASAC), which will have a 40 per cent share in the new entity.
Citing an unidentified industry insider, Xinhua reported the three energy giants will share the remaining ownership, with CNPC holding 30 per cent, Sinopec 20 per cent and CNOOC 10 per cent.