SHANGHAI, Sept 24 China plans to create a new
crude oil and liquefied natural gas pipeline transportation
company by stripping these operations out from its three largest
oil firms, the state-backed China Securities Journal reported on
The move is aimed at reducing such firms' monopoly in the
oil and gas market and improving competition, the newspaper
reported without saying where it had obtained the information
The newspaper said that the plan had been set, and was now
being studied and implemented in steps. China's oil industry is
dominated by state players China National Offshore Oil Corp
, China National Petroleum Corp (CNPC) and
Sinopec Group, parent of Sinopec Corp.
The move will be in line with Beijing's plans to allow
domestic private investors greater access to its energy sector,
which has enjoyed massive expansion over the last two decades
but has become a breeding ground for corruption.
CNPC's PetroChina arm, for example, controls more
than 80 percent of China's natural gas grid.
On Sept. 16, Beijing unveiled details of how it planned to
carry out the biggest overhaul of its sprawling and
underperforming state-owned enterprise (SOE) sector since the
late 1990s. It named oil and gas as a sector that could be
suitable for limited non-state investment.
Sinopec has already been a testing ground for such reforms.
In September, it sold 30 percent of its retail business to 25
big financial firms for $17.5 billion.
(Reporting by Brenda Goh and Chen Yixin; Editing by Michael
Perry and Ed Davies)