PetroChina to spin off key gas pipelines

|About: PetroChina Company Limited (PTR)|By:, SA News Editor

PetroChina (PTR) says it will spin off part of its transnational gas pipelines business, the latest move in China's strategy to invite outside capital into state-dominated sectors including energy.

PTR plans to establish a separate company comprising two of its west-east pipelines, which carry natural gas more than 4K km from the central Asian border region of Xinjiang to Shanghai and Guangdong on the east coast; PTR values the assets at $4.7B-$6.3B.

Rival Sinopec (SNP) became the standard bearer for the new policy earlier this year with its $20B plan to sell a minority stake in its gasoline stations and convenience store business.