Baoshan Steel Buys Stake in China's East-West Gas Pipeline

China's Baoshan Iron & Steel will invest 8 billion yuan ($1.3 billion) in a natural gas pipeline project led by China National Petroleum Corp, Reuters has said citing a company statement.

The steelmaker will take a 12.8 percent stake in the third West-East pipeline project -- a pipeline which will span more than 5,000 km starting from the northwestern border in Xinjiang to Fujian province in the southeast, the news agency said.

The pipeline will have the capacity to transport 30 billion cubic metres (bcm) of natural gas per year.

Huabao Investment, a wholly-owned subsidiary of Baosteel Group, will also invest 2 billion yuan for a 3.2 percent stake in the project. China National Petroleum Corp will have a 52 percent stake.