CNPC: CNY 37.5 Bn Invested in the Third West-East Gas Pipeline

January 2, 2013

ChinaScope Financial, citing officials at China National Petroleum Corporation (CNPC), reports that major shareholders have invested CNY 37.5 billion into the third West-East gas pipeline to supply China's industrialized eastern provinces with much-needed natural gas from the west.

The National Council for Social Security Fund, Beijing Guolian Energy Industry Investment Fund, and Baoshan Iron and Steel (600019: SHA) each invested CNY 6 billion in the joint venture. PetroChina (PTR: NYSE; 0857: HKG; 601857: SHA) injected CNY 19.5 billion into the company.

CNPC said that Youngor Group (600177: SHA) and other private capital started to participate in the West-East gas pipeline project via the Beijing Guolian Energy Industry Investment Fund.

Total investment in the gas pipeline is estimated at CNY 116 billion. The registered capital of the joint venture is expected to be CNY 62.5 billion; PetroChina plans to invest CNY 32.5 billion for a 52 percent stake, while the National Council for Social Security Fund, Beijing Guolian Energy Industry Investment Fund, and Baoshan Iron and Steel will respectively hold a 16 percent stake by investing CNY 10 billion each.

Construction of the West-East gas pipeline was started on October 16, 2012. The 7,364-km long pipeline is designed to have an annual gas supply capacity of 30 billion cubic meters.

Copyright 2013, ChinaScope Financial . All rights reserved.