Reginal Thomas
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PetroChina Might Sell Its Natural Gas Unit To An Affiliate Instead Of Auctioning It Off

PetroChina is having second thoughts on auctioning off its multi-billion dollar natural gas pipeline unit, and might sell it to a affiliate instead. By selling PetroChina Eastern Pipelines Co Ltd to the affiliate, which is already 50% owned by PetroChina, would allow China’s largest energy producer to keep control over the national gas grid while raising cash to fund oil and gas exploration. By canceling the auction the government of China’s plan to open the state dominated energy sector would face a setback. PetroChina controls over 80% of China’s natural gas grid, and some privately owned companies have filed grievances that this monopoly hurts their business.