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    Guangdong Passes Gas Grid to New Operator


Guangdong has become the first Chinese region to transfer its gas pipeline grid to newly-formed national operator PipeChina.

by: Joe Murphy

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Guangdong Passes Gas Grid to New Operator

China's southern Guangdong province has become the first region to transfer its gas pipeline network to newly-established oil and gas infrastructure operator PipeChina, the state Xinhua news agency reported on September 24.

The regional government signed a strategic alliance with PipeChina, giving it operational control of trunk gas pipelines in the province, and responsibility for future investment in the network. The deal will also see PetroChina gain an equity stake in the network, Xinhau said without divulging details.

PipeChina aims to build six new trunk pipelines in Guangdong this year with a total length of 751 km. The province is the second-biggest gas consumer after the eastern Jiangsu region.

PipeChina was set up in December after years of negotiations, to serve as a national  pipeline operator. It will take control of the pipeline assets of China's big three oil companies – Sinopec, CNPC and Cnooc – and ensure third-party access to their capacity. In July it announced its first acquisition, agreeing to buy a subsidiary of Sinopec that controls the 4bn m3/yr Yulin-Jinan pipeline in eastern China.