China’s CNPC Said to See Pipeline Spinoff as Becoming Unlikely
- CNPC decided last month to invest in new Shaanxi-Beijing line
- Government may limit opening of resources on pollution concern
Is a CNPC Pipeline Spinoff Now Less Likely?
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China National Petroleum Corp. decided last month to invest in expanding a major natural gas pipeline after determining the government will no longer seek to spin off its pipeline assets into an independent company, people with knowledge of the plan said.
One reason why a national pipeline company that provides access to all producers is no longer needed is because opposition among policy makers has increased to opening upstream exploration to more participants, which was being considered as part of the industry’s reform guidance, according to the people, who ask not to be identified because the information isn’t public.