Sinopec to sell 50% stake in its pipeline subsidiary

Sinopec Corp announced it will sell a 50% stake in its Sichuan-East pipeline subsidiary. This is a further step towards the government's target of introducing competition in the midstream sector following PetroChina's pipeline asset sales and gas infrastructure integration last November. The move will help Sinopec to raise cash to develop gas resources including unconventional, as well as build long-distance gas pipelines and storage facilities in the next few years. The Sichuan-East pipeline transports gas from Puguang, Fuling and Yuanba in southwest China to the coastal market, and its strategic position will make it an attractive option for private investors.