- PetroChina approved a 40.02 billion yuan ($5.59 billion) takeover of three gas storage facilities from its parent company.
- PetroChina aims to boost efficiency, expand clean energy reliance, and secure stable operations as China shifts from coal to lower-emission natural gas.
PetroChina announced on Tuesday, August 26, that it plans to acquire three natural gas storage facilities from its controlling shareholder, China National Petroleum Corporation (CNPC), in a deal worth 40.02 billion yuan ($5.59 billion).
The state-owned oil giant said the acquisition would add 10.97 billion cubic metres of working gas storage capacity to its portfolio, strengthening its natural gas industrial chain as China deepens its shift toward cleaner energy.
“This will enhance adjustment efficiency and maximise the overall benefits of the natural gas industry chain,” PetroChina said in a filing to the Shanghai Stock Exchange.
The company approved the purchase of Xinjiang Gas Storage, Xiangguosi Gas Storage, and Liaohe Gas Storage from CNPC. By expanding storage capacity, PetroChina aims to ensure stable operations and meet rising demand for natural gas, which Beijing is promoting as a lower-emission alternative to coal.
China has accelerated natural gas consumption to improve energy security, reduce reliance on coal, and cut emissions in line with its climate goals.
Earlier on Tuesday, PetroChina reported a 5.4% decline in first-half net income, though its gas business earned 18.6 billion yuan, an increase from the previous year. The company expects oil demand to face growing competition from renewable energy, but projects natural gas demand to recover and expand rapidly.