PetroChina on Tuesday proposed to take over three natural gas storage facilities from its controlling shareholder, state-owned China National Petroleum Corporation, in a deal worth 40.02 billion Chinese yuan ($5.59 billion).
The deal comes as PetroChina looks to ensure stable operation and high-quality development of its natural gas industrial chain.
The transaction is estimated to add 10.97 billion cubic metres of working gas storage capacity to the company’s portfolio.
PetroChina is riding the country’s increasing reliance on natural gas, a lower-emission fuel viewed as a key bridge in its shift to greener energy.
The largest Chinese oil and gas firm posted a 5.4% decline in first-half net income earlier in the day.
However, the company’s gas segment reported 18.6 billion yuan in earnings, which was higher than the amount logged in the same period a year ago.
PetroChina expects Chinese oil demand to continue facing competition from alternative energy. However, it projects natural gas demand to recover and grow rapidly.
Source: Reuters.com
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