17 June 2013 07:40 [Source: ICIS news]
SINGAPORE (ICIS)--PetroChina will establish a Beijing-based pipeline joint venture with Taikang Asset Management and Beijing Guolian Energy Industry Investment Fund, the biggest oil and gas producer in China announced over the weekend of 15-16 June.
Under an agreement signed on 14 June, PetroChina Pipeline United Co will be jointly owned by PetroChina, Taikang and Beijing Guolian. The companies will hold 50%, 30%, 20% stake respectively. None of the three partners could sell their interests in the joint venture in the initial 10 years’ operation.
PetroChina will inject its western pipeline assets into the yuan (CNY) 40bn ($6.53bn) joint venture, while the two private firms will invest through cash, according to a statement from PetroChina.
This is PetroChina’s second cooperation with private firms in pipeline business. Before this, the company invited four private ventures to jointly build the second west-to-east gas pipeline.
“The cooperation with these strategic partners will ensure capital needs of our development, effectively control investment size and optimise our financing structure,” the statement said.
($1 = CNY6.13)
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