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PetroChina consolidates pipeline assets into $12 billion company

Staff writer |
PetroChina is putting its pipeline operations into a single company with a registered capital of 80 billion yuan ($12.4 billion), saying it wants to improve efficiency and boost the value of the businesses.

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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.

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