CNPC Regroups Gas Business   

China Petroleum Pipeline Bureau (CPPB), a unit of China National Petroleum Corp(CNPC), has put on sale all of its 49% interest in China Oil Zhongtai Gas Co., Ltd. for RMB615.54 million via the Beijing Equity Exchange.
   CPPB requested that a buyer must be a state-owned or state-controlled enterprise that engages in the petroleum and natural gas businesses and has good business reputation and the ability to pay. The buyer must be alone one company rather than a consortium, have at least 10 years of experience in urban gas business and be profitable for at least five consecutive years, it said.
   CNPC has been consolidating its urban gas operation by putting all related assets into its subsidiary PetroChina Kunlun Gas Co., Ltd. But this buyer should not be PetroChina Kunlun because the company was only established in August 2008, thus not qualified to be purchaser.
   The establishment of PetroChina Kunlun marks the official entrance into the urban gas business for CNPC. With CNPC in April 2009 integrating nine gas subsidiaries with RMB1.086 billion worth of assets into Kunlun, Kunlun now has annual gas supply capacity of more than 5 billion cubic meters. (CCR2009 No.14)
   China Oil Zhongtai Gas focuses on the construction and operation of urban gas pipeline network and the comprehensive utilization of natural gas and liquefied petroleum gas as well as some technical services and management consulting. At present, it has gas-related business in more than 20 domestic cities.
   China Oil Zhongtai Gas is also 35.77% owned by Zhongda Industrial Group Co., Ltd., a unit of China Oil & Gas Group Co., Ltd., and 15.23% owned by Alta Financial Holdings Ltd.
   China Oil Zhongtai Gas posted operating revenue of RMB1.258 billion, an operating profit of RMB219 million and a net profit of RMB192 million in 2008. As of June 30th, 2009, the company's total assets stood at RMB1.435 billion.