(Yicai Global) Sept. 27 -- China Oil and Gas Pipeline Network, also known as PipeChina, will own all of natural gas pipeline operator United Pipeline after paying CNY9.1 billion (USD1.3 billion) for the nearly 3.5 percent stake held by a life insurance company.

PipeChina, which runs the country’s largest oil and gas network, will buy the shares from New China Life Insurance, the Beijing-based seller said in a statement yesterday.

The major life insurer said the equity transfer will help it refocus on its main business and is an opportunity to cash in on an investment and reallocate resources to other businesses. It will make a CNY570 million (USD76.9 million) profit from the deal.

State-owned PipeChina has been gradually increasing its ownership of United Pipeline. It paid CNY3.4 billion in May for the 1.3 percent held by Youngor Group, a big garment maker. At that point, PipeChina owned 72.3 percent, while other shareholders included the National Council for Social Security Fund, Taikang Insurance, Baoshan Iron and Steel, and Generali China.

Founded in 2019, PipeChina builds and operates trunk pipelines, gas storage sites, and liquefied natural gas terminals. United Pipeline, which was formed in 2015, is mainly responsible for China's West-East, China-Russia East, Urumqi-Lanzhou, and Zhongxian-Wuhan pipelines.

Editor: Emmi Laine, Xiao Yi