PipeChina signs gas grid pact with southern Guangdong province

SINGAPORE (Reuters) - Southern Guangdong became the first province to transfer its natural gas pipeline network to China’s newly formed oil and gas pipeline giant PipeChina, the state-run Xinhua news agency said on Thursday.

PipeChina and Guangdong government officials signed a strategic alliance in Beijing that allocates to PipeChina future investment and operation of trunk natural gas pipelines in Guangdong.

The alliance involves an asset stake transfer, the report said, without giving further details.

PipeChina plans to lay six new trunk gas lines this year in Guangdong, with a total length of 751 km (467 miles).

Guangdong is China’s second-largest gas consuming province after eastern Jiangsu.

Beijing created PipeChina with the goal of providing neutral access to pipeline infrastructure previously dominated by national oil and gas producers, and spurring investment from small companies and those not owned by the state.

Reporting by Chen Aizhu; Editing by Clarence Fernandez