China’s CNPC said to seek creation of single gas company

|By:, SA News Editor

China National Petroleum (NYSE:PTR) may combine units to create a single natural gas company to compete with private rivals, ahead of an inflow of Russian fuel at the end of the decade, Bloomberg reports.

The plan under consideration would be for CNPC’s Hong Kong-listed Kunlun Energy unit to buy unlisted gas distributor PetroChina Kunlun Gas.

CNPC’s desire to combine commercial sales of liquefied natural gas with retail gas distribution is not new; a plan was thwarted last year by a government graft probe that snared two Kunlun Energy chairmen.