The sale includes part of a critical network of pipelines which link China’s far west Xinjiang region to major natural-gas supplies in Central Asia.
Trans-Asia Gas Pipeline operates a 1,830km gas pipeline system which runs through Turkmenistan, Uzbekistan and Kazakhstan to China’s far western province Xinjiang.
The divestment is a part of PetroChina’s effort to strengthen its balance sheet amid weak oil and gas prices, according to Bloomberg.
PetroChina plans to complete asset sales by the end of 2015 in order to meet the government’s annual profit goals, people with knowledge of situation said recently.
In an effort to improve state-owned industries, the China Government is considering spinning off oil and gas pipelines into independent businesses from its energy companies.
Separately, PetroChina agreed to transfer CNY3.51bn ($548.5m) worth of natural gas reserves to its controlling shareholder China National Petroleum (CNPC).
Sales proceeds are expected within 20 days from the date of closing the deal scheduled on 30 November, reported Hong Kong Standard.
Additionally, the oil and gas producer agreed to transfer its wholly-owned unit PetroChina Kunlun Gas into Kunlun Energy.
Kunlun Energy, which is 58.33% owned by PetroChina, expects the acquisition to help focus on LNG distribution, expand its business.
Image: PetroChina intends to strengthen its balance sheet through assets sale. Photo: courtesy of PetroChina Company Limited.
