China Petroleum & Chemical Corp. (Sinopec), Asia’s largest oil refiner, said on Tuesday that its board has approved a plan to raise fresh capital by selling half of a major natural gas pipeline.
The state energy giant said it will sell 50 percent stake in the unit that operates the Sichuan-to-East China gas pipeline, the Wall Street Journal reported.
Sinopec didn’t say how much it expects to raise from the sale or when it would be completed.
The Sichuan-to-East China pipeline, which began operations in 2010, has a designed annual capacity of 12 billion cubic meters.
Sinopec has said its total investment in the pipeline project was around 62.7 billion yuan (US$9.5 billion).
This latest announcement by Sinopec comes after rival PetroChina recently said it would restructure pipeline assets and sell stakes in the pipelines.
It also comes ahead of expected government reforms that could weaken the hold of state-owned energy giants over China’s oil and gas infrastructure, the report noted.
– Contact us at [email protected]