On July 23, PetroChina and Sinopec announced that they would sell their major oil and gas pipeline assets to China Oil and Gas Pipeline Network (PipeChina).  

According to the announcement, PetroChina will sell some of its major oil and gas pipelines, gas storage reservoirs, liquefied natural gas (LNG) terminals to PipeChina, including the equities PetroChina holds in relevant companies for equity interest and corresponding cash consideration. The deal will give PetroChina a stake of 29.9% in PipeChina but the sale excludes Kunlun Energy’s pipeline assets. 

Sinopec will sell pipeline assets of its wholly-owned subsidiary Sinopec Natural Gas and holding subsidiary Sinopec Kantons to PipeChina for equity interest and cash consideration. Sinopec and Sinopec Natural Gas will together hold a 14% stake of PipeChina, at 9.42% and 4.58% respectively.