Kunlun to use PipeChina cash for downstream growth
An exit from the midstream gives the PetroChina subsidiary a war chest and proves the logic of the country’s gas market rationalisation
The multibillion-dollar sale of key gas supply infrastructure by China’s Kunlun Energy paves the way for the firm to focus on its burgeoning downstream businesses, including city gas distribution and coal-to-gas switching among industrial users. Kunlun agreed in December to sell its 60pc stake in four long-distance pipelines that transport gas to Beijing and a 75pc interest in the Dalian LNG import terminal for CNY40.9bn ($6.36bn) to PipeChina, the state-controlled midstream oil and gas company launched last year. The all-cash sale comes months earlier than industry analysts had expected. The four Shaanxi-Beijing pipelines transported 26.2bn m³ of gas in the first half of 2020, which was equ
Also in this section
22 November 2024
The Energy Transition Advancement Index highlights how the Kingdom can ease its oil dependency and catch up with peers Norway and UAE
21 November 2024
E&P company is charting its own course through the transition, with a highly focused natural gas portfolio, early action on its own emissions and the development of a major carbon storage project
21 November 2024
Maintaining a competitive edge means the transformation must maximise oil resources as well as make strategic moves with critical minerals
20 November 2024
The oil behemoth recognises the need to broaden its energy mix to reduce both environmental and economic risks
