Kunlun to use PipeChina cash for downstream growth
An exit from the midstream gives the PetroChina subsidiary a war chest and proves the logic of the country’s gas market rationalisation
The multibillion-dollar sale of key gas supply infrastructure by China’s Kunlun Energy paves the way for the firm to focus on its burgeoning downstream businesses, including city gas distribution and coal-to-gas switching among industrial users. Kunlun agreed in December to sell its 60pc stake in four long-distance pipelines that transport gas to Beijing and a 75pc interest in the Dalian LNG import terminal for CNY40.9bn ($6.36bn) to PipeChina, the state-controlled midstream oil and gas company launched last year. The all-cash sale comes months earlier than industry analysts had expected. The four Shaanxi-Beijing pipelines transported 26.2bn m³ of gas in the first half of 2020, which was equ
Also in this section
16 April 2026
Demand for oil is falling because supply cannot meet it, not because it is no longer required
16 April 2026
The continent has an immediate opportunity to make the most of its energy resources by capturing gas that is currently slipping away
15 April 2026
The continent is seeing political pushback to climate plans, corporate reassessment of transition goals and rising supply risk in a fractured global order
15 April 2026
The Middle East energy crisis may turn out to be pivotal to the industry’s long-term expansion, but significant challenges still stand in its way
