PetroChina consolidates pipeline assets into $12 billion company
Assets that were spread across three units are being consolidated into PetroChina Pipelines, PetroChina said in a filing to the Shanghai Stock Exchange. PetroChina will own 72.26 percent of that company when the transaction closes on December 31.
PetroChina said that a streamlined structure would improve management efficiency and cut operating costs.
Three companies - PetroChina Eastern Pipelines, PetroChina Northwest United Pipelines and PetroChina United Pipelines - run different parts of the nation's west-to-east gas transmission pipelines.
After the transaction, shareholdings in the company with the assets will include: Guolian Fund, 5.33 percent; the National Council for Social Security Fund, 4.4 percent; Taikang Life Insurance, 4.08 percent; Baoshan Iron & Steel, 3.52 percent, and New China Life Insurance at 3.46 percent. ■