(Yicai Global) Dec. 13 -- China Petroleum and Chemical Corporation [SH:600028], a natural gas pipeline project company owned by Sinopec Group, is to sell 50 percent of its stake in the “Sichuan-to-East China Gas Pipeline Project” to China Life Insurance Company Limited [SH:601628] and the transportation unit of the State Development & Investment Corp.
The sale comes just months after Sinopec said in August it planned to divest half of its share in the project, following Beijing’s market-oriented reform drive to up efficiency and boost infrastructure investment in cleaner fuel solutions.
Insurers China Life will pay CNY20 billion for a 43.86 percent stake, while a wholly-owned subsidiary of the State Development & Investment Corp., SDIC Communications Co. will take 6.14 percent for CNY2.8 billion, the country’s second-largest oil and gas giant told the Hong Kong Stock Exchange.
The deal will raise the CNY22.8 billion (USD3.3 billion) needed for future operations of the “Sichuan-to-East China Gas Pipeline Project”, build gas-storage facilities and push forward Sinopec’s natural gas business
With a designed transmission capacity of 12 billion cubic meters a year, the Sichuan to East China natural gas transmission project was launched in 2009. Its pipelines stretch across six provinces, Sichuan, Hubei, Jiangxi, Anhui, Jiangsu and Zhejiang and two municipalities, Chongqing and Shanghai and measures 2,229 kilometers in total length.