Radio Free Asia: China Pipelines Sold Far Below Cost

China's biggest oil company has sold a half-interest in its Central Asia gas pipelines for a fraction of its cost, raising questions about its finances and the government's energy reform plans.

On Nov. 25, PetroChina, the listed arm of state-owned China National Petroleum Corp. (CNPC), announced the decision to sell 50 percent of its Trans-Asia Gas Pipeline Co. subsidiary for 15-15.5 billion yuan (U.S. $2.3-2.4 billion).

The sale was one of two PetroChina deals, including a share sale in the country's West-East gas pipelines last week. Both appeared aimed primarily at raising cash.

The Trans-Asia sale to a unit of China Reform Holdings Corp., a state-owned asset management firm, was first reported as a step in the right direction for CNPC and the government-controlled energy sector, which have been urged to demonopolize, restructure, and open up to investment for years. MORE