China to set up company to manage pipeline grid

China is set to inaugurate a single special-purpose entity that will own and manage the country’s oil and gas pipeline grids, a move designed to consolidate the country’s pipeline operations and create a level playing field for all gas players.

The State Council’s Assets Supervision & Administration Commission will own a majority stake of 50% in the new company with a total registered capital up to 500 billion yuan ($74 billion), while China National Petroleum Corporation (CNPC) will have 70% of the remaining stake, Sinopec 20% and China National Offshore Oil Corporation (CNOOC) 10%.