China National Petroleum Corp. plans to sell the company’s pipeline assets in the eastern region to the National Social Security Fund and other institutions, the National Business Daily reported on Tuesday, citing an unnamed source.
The move is part of the country’s efforts to diversify ownership at the oil and gas giant, the newspaper said.
If the deal pushes through, it will not be the first time that the NSSF links up with CNPC, the parent company of PetroChina. In May 2012, the pension fund invested 10 billion yuan (US$1.62 billion) in the company’s third west-to-east gas project, according to the report.
NSSF had 1.2 trillion yuan of assets under management at the end of last year, 20 percent of which could be used for direct investment.
Zhu Fuling, a professor with Central University of Finance and Economics, said the pipeline project could generate long-term steady yields, while social security funds, as strategic reserve capital, are ideal for long-haul investment.
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