PetroChina Proposes to Merge Kunlun Energy, Kunlun Gas

PetroChina on Wednesday said it has approved a proposal to integrate Kunlun Energy Co. and Kunlun Gas Co.

PetroChina would sign a letter of intent with Kunlun Energy in this regard.

The integration can be achieved by way of acquisition of the equity interests or assets of Kunlun Gas by Kunlun Energy or other forms of integration. PetroChina currently holds 58.33 percent equity interests in Kunlun Energy and 100 percent equity interests in Kunlun Gas.

A joint working team would be set up by PetroChina and Kunlun Energy to consider and finalise a detailed integration scheme.

Kunlun Energy has natural gas operations in both upstream and downstream sections while PetroChina Kunlun Gas focuses on town gas business.