China would spilt off oil and natural gas pipelines from state-owned oil giants and set united oil or gas operator in the future, said a report by China Securities Journal on Thursday.
The government is studying on the adoption of one-step or multi-step approach to the end, said the report. The spin-off of oil and gas pipelines would help break monopoly by integrated operation of state-owned oil companies and reinforce competitiveness of the industry, said Lin Boqiang, an energy expert with Xiamen University.
The separation of oil and gas pipelines could be the first step in introducing social capital and develop mix-owned economy, said investment banker Shen Meng. Incremental investment following spin-off of oil and gas pipelines would be conductive to pipeline equipment makers and town gas operators would have better profitability, according to Huatai Securities.
National oil and gas operating companies could be fully funded by the government or have the participation of private sector, said Founder Securities.
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