China's top oil and gas producer PetroChina (PTR.NYSE; 601857.SH; 00857.HK) Wednesday said it has entered agreements to sell natural gas reserves in six underground storage bases to its parent company China National Petroleum Corporation (CNPC).
Transfer of natural gas reserves would help clarify relationship between PetroChina and CNPC, sort out settlement relationship and recover cash flow at early data, said PetroChina.
Remaining reserves of natural gas in the underground storage facilities would be used as foundation cushion gas.
The natural gas reserves are located in Hu 2 well block of Hutubi gas field in Xinjiang, Xiang 10/18 well block of Xiangguosi gas field in Sichuan basin; Guxinzhuang and Su-1 south block in Hebei, Bai8, Bai6-1 and Ban G1 block in Tianjin, Shuang 6 block in Liaoning and Shan 224 well block in Erdos basin.
The deal is expected to close within 2015 and proceeds would be used as general working capital for PetroChina and its subsidiaries.
CNPC has completed construction of the above-mentioned six underground natural gas storage facilities, which are used for peak-shaving and emergency response.
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