China launches new multi-billion-dollar oil and gas pipeline company

The nation plans on streamlining and expanding its pipeline infrastructure.

China has created a new company as part of its plan to double its pipeline infrastructure to more than 240,000 km by 2025.

Beijing plans on a national oil and gas pipeline company that will combine most of its energy infrastructure while also providing market access to new investors.

Wood MacKenzie expects the new pipeline company may be worth between US$80 billion and US$105 billion

“The new company will separate [oil and gas] transportation, production and sales, and open [transportation] to third-party entities, which will benefit market competition,” reported the Xinhua News Agency that cited an unidentified official, according to the New York Times.

In a separate report on Monday, according to the South China Morning Post, Xinhua said the new entity is expected to be overseen by the State-owned Assets Supervision and Administration Commission. The Assets Supervision Commission which will have a 40 percent stake in the new entity.

CNPC, Sinopec and CNOOC, three other energy giants will hold the remaining shares in the company.