From Bloomberg. (Thanks Michael)
President Xi Jinping’s overhaul of China’s energy industry took a step forward as PetroChina Co. announced plans to unload $2.4 billion in Central Asian pipelines.
The country’s biggest energy producer will sell a 50 percent stake in Trans-Asia Gas Pipeline Co. to a unit of China Reform Holdings Corp., another state-owned company that acts as an investment firm charged with revamping government-run entities. Trans-Asia Gas Pipeline operates a 1,830 kilometer (1,140 mile) system that carries gas through Turkmenistan, Uzbekistan and Kazakhstan to China’s far western province Xinjiang.
China Reform was set up in 2010 by China’s State-owned Assets Supervision and Administration Commission, an arm of the cabinet that controls the biggest government enterprises. It agreed last year to help restructure the coal-to-chemical business of Datang International Power Generation Co., bought 6 percent in China Tower Corp. earlier this year and has taken over some smaller state enterprises.
“We think this is a clear signal that China is more likely to establish a ‘National Gas Pipeline Entity’ to administer all the backbone pipeline assets,” Morgan Stanley analysts including Andy Meng said in a research report Thursday.