China May Force CNPC to Hive Off Gas Pipeline Business

China’s National Development and Reform Commission (NDRC) is mulling putting CNPC’s natural gas pipeline network under the direct jurisdiction of the central government or spinning it off into an independent company, according to Want China Time.

The move has prompted as a result of the scandal that erupted at China National Petroleum Corporation (CNPC).

A ranking CNPC official said that the company is under heavy pressure to restructure its operations, following the outbreak of the major scandal, Want China Times reported.

The news report added, quoting NDRC official, that a spinoff of the natural gas pipeline network can break the market monopoly and facilitate the reform of natural gas prices.

Despite repeated calls by experts, CNPC has been reluctant in transforming its natural gas pipeline network into an independent outfit, citing a complicated shareholding structure, which includes both private and foreign interests, Want China Times said.

Sign-up for our free weekly newsletter update via email here