Reuters: PetroChina reconsiders sale of natural gas pipeline assets

PetroChina is reconsidering a plan to auction off its multi-billion dollar natural gas pipeline unit, and could instead sell it to an affiliate, three people who were briefed on the matter by the Chinese energy giant told Reuters.

Selling PetroChina Eastern Pipelines Co Ltd to the affiliate, 50 percent owned by PetroChina, would enable China's largest energy producer to maintain control over the national gas grid as well as raise cash to fund oil and gas exploration.

But scrapping the auction would pose a setback to the government's plans to open up the state-dominated energy sector to domestic private investors to improve competition and rein in corruption.

PetroChina controls more than 80 percent of China's natural gas grid, and some privately owned domestic gas companies have complained this monopoly hurts their business. MORE